IPOH: Even though Perak's Mentri Besar Incorporated (MB Inc) suffered nearly RM40mil in losses, it still approved staff bonuses payments, splashed out on retreats and bought luxury vehicles, revealed Datuk Seri Ahmad Faizal Azumu (pic).

The current Perak Mentri Besar revealed that the losses were incurred when Barisan Nasional was helming the state government, in just three years after the so-called "revival" of MB Inc in 2012.

Ahmad Faizal said the losses were uncovered after MB Inc's accounts from 2012-2015 were audited by Jeffrey & Co, after a request by the current state government.

“The audit for 2016 and 2017 is still being done,” he said in his winding up speech at the state assembly sitting here today (Dec 5).

Ahmad Faizal said the previous management had failed to carry out any audit since 2012.

“What is more shocking, is that despite recording losses, the previous management approved bonus payments, spent on retreats and purchased luxury vehicles.

“Thus the new management appointed took steps to reduce operation costs up to 50%, and to review agreements which do not benefit MB Inc, and the state government,” he said.

Ahmad Faizal said MB Inc’s commitment fee of approximately RM50mil was also used up by the previous management, and a balance of less than 5% was left in its coffers.

He said checks on several agreements showed that four projects with third parties failed to operate.

Earlier, he said checks on several Government Linked Companies (GLCs) reports showed leakages from previous management agreements which were not only biased but detrimental to GLCs.

Besides MB Inc, Ahmad Faizal said the Perak State Agriculture Development Corporate Group also showed its profit margin decreasing by 23% in 2012 to 5% in 2017.

“Checks also showed that its long term debts increased from RM3mil in 2012 to RM100mil in 2017, and is cash reserves also declined from RM230mil in 2012, to RM105mil in 2017,” he added.