PETALING JAYA: The Malaysian Agrifood Corporation Berhad (MAFC) has accumulated losses of RM447.84mil up to 2014 and experienced negative cash flow for three consecutive years from 2012 to 2014, the Auditor-General’s Report 2015 revealed.
The report, which was released on Wednesday, noted that overall, MAFC’s financial performance was less than satisfactory.
In 2014, its net loss after tax was RM18.49mil, the report said.
The audit, performed between July and October 2015, focused on corporate governance, main activities and financial aspects for the period from the year 2012 to 2015.
It also explained that generally, MAFC complied with the stipulated rules on corporate governance for the appointment of its chairman, board of directors and chief executive officer.
However there were several aspects of performance and management of activities, corporate governance and financial management that were problematic.
The audit found that there was no increase in the number of MAFC distributors or retailers since 2012.
It also discovered that a highland agriculture and research collaboration agreement for the lease of Malaysian Agricultural Research and Development Institute (Mardi) land in Tanah Rata, Cameron Highlands, had yet to be drafted despite signing the memorandum of understanding in 2008, seven years ago.
MAFC is wholly owned by national sovereign wealth fund Khazanah Nasional Berhad, and its main objective is to boost the food supply chain business in Malaysia with modern technology and logistics systems as well as best practices as stipulated by International Food Safety Standards.