Amanahraya fund management inefficient, in deficit from 2008-2019 - AG report

AmanahRaya Bhd’s fund management was found to be inefficient as the fund had experienced a deficit from 2008 to 2019, according to the Auditor-General Report (LKAN) 2019 Series 1.

The report, which was tabled in the Parliament today, concluded that the current year's net income could not cover the total income distribution, and the investment performance of the Kumpulan Wang Bersama (KWB) was also inefficient.

However, it noted that AmanahRaya has been making efforts towards the recovery of the KWB fund starting from 2019.

“AmanahRaya needs to depend on the government's guarantee for its inability to perform as a trustee to cover the KWB fund deficit of RM1.02 billion when there is a demand," it said.

The report recommended for the relevant parties to set Key Performance Indicators for KWB's investment and recovery efforts at the company level for the purpose of monitoring by its board of directors.

It also proposed for the relevant parties to review the income distribution rate for the sustainability of guaranteed funds - taking into account KWB’s financial capabilities as well as the views and the approval of the board of directors, prior to obtaining the minister's approval.

AmanahRaya also needs to ensure that investment policies are reviewed and updated periodically, and the report also proposed for it to set up a task force to resolve trust account backlogs which date back to 1900.

- Bernama