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KUALA LUMPUR: AmanahRaya Bhd’s fund management was found to be inefficient as the fund had experienced a deficit from 2008 to 2019, according to the 2019 Series 1 Auditor General’s Report (LKAN).
The report, which was presented to Parliament today, concluded that the current year’s net income could not cover the full income distribution, and that the return on investment of the Kumpulan Wang Bersama (KWB) was also inefficient.
However, he noted that AmanahRaya has been making efforts to get the KWB fund back as of 2019.
“AmanahRaya needs to rely on the government guarantee for its inability to act as trustee to cover the KWB fund deficit of RM1.02 billion when there is demand,” he said.
The report recommended that relevant parties establish Key Performance Indicators for KWB’s investment and recovery efforts at the company level for the purpose of monitoring them by its board of directors.
He also proposed that the relevant parties review the revenue sharing rate for the sustainability of the guaranteed funds, taking into account the financial capabilities of KWB, as well as the opinions and approval of the board of directors, before obtaining the approval of the minister.
AmanahRaya must also ensure that investment policies are periodically reviewed and updated, and the report also proposed that it establish a task force to resolve backlogs in trust accounts dating back to 1900. – Called
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