AG reports less satisfactory performance of ASSB

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ASSB’s trust fund building in Kuching. The overall financial performance, achievements and investment returns for the Sarawak unit trust management company, ASSB, are less satisfactory while the financial management and corporate governance are commendable, the AG’s Report 2014 said.

KUCHING: The overall financial performance, achievements and investment returns of Amanah Saham Sarawak Bhd (ASSB), a Sarawak unit trust management company, are less satisfactory while the financial management and corporate governance are commendable.

The Auditor-General (AG) Tan Sri Ambrin Buang cited this in his first series of report on Sarawak for 2014 announced yesterday.

The AG said the audit was carried out on ASSB between July and August last year.

Among its findings, it noted ASSB’s accumulated losses after tax amounted to RM2.67 million as at end of 2013.

The AG added Amanah Saham Sarawak Trust Fund (Assar) had only been able to pay dividends of between 1.5 per cent and two per cent to investors from June 2011 to June 2014.

The report observed investment in equities suffered net unrealised loss of RM38.51 million from June 2011 to June 2014.

Furthermore, the report said the minimum price guarantee of RM1 for supporting the Net Asset Value (NAV) of Assar’s fund was a financial burden to both the company and its holding company, Permodalan Assar Sdn Bhd (PASB).

Therefore, to ensure the company’s sustainability and to achieve its objectives, the AG has recommended that the management of ASSB review the implementation methods of minimum pricing.

“Review the implementation methods of minimum price guarantee mechanism of RM1 per unit in order to reduce the financial burden of the company, Permodalan Assar Sendirian Bhd, and the state government,” the report said.

Besides that, it advised ASSB to review and improve the basis of determining the total NAV so that the total fund’s units in circulation could be increased for it to be invested.

Meanwhile, the AG said ASSB was incorporated on April 1, 1993 and is a wholly-owned subsidiary of PASB, which has four state government agencies; namely Yayasan Sarawak (20.8 per cent), Sarawak Economic Development Corporation (16.7 per cent), Pelita Holdings Sdn Bhd (10.4 per cent), Sarawak Timber Industry Development Corporation (10.4 per cent) and Lembaga Amanah Kebajikan Masjid Negeri Sarawak (41.7 per cent) as its shareholders.

The report added ASSB has been appointed to manage the only unit trust fund of the state based on the trust deed dated August 20, 1993.

It pointed out that the authorised capital of ASSB is RM10 million and paid-up capital is RM10 million.

The report said the main objective of ASSB is to provide opportunities for the Bumiputera community in Sarawak to participate in the mainstream economy through collective investment in capital market and money market in Malaysia.

It noted ASSB’s main activity as trading and fund management of Assar’s units.

The AG said the fund was launched on August 25, 1993 with the allowable fund size of 750 million units.

The AG further disclosed that the total number of investors as at end of June 2014 was 71,085, with investors’ funds totalling RM550.61 million.

The report further said ASSB suffered after tax loss of RM1.25 million and accumulated losses of RM2.67 million as at end of 2013.