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A-G’s report reveals UiTM could lose over RM51 mil in failed compensation claims | Scoop
UiTM is facing the risk of losing around RM51.08 million due to delays in seeking compensation from scholarship holders who have breached their contracts. – Scoop pic, October 10, 2023
News

A-G’s report reveals UiTM could lose over RM51 mil in failed compensation claims

Document details weaknesses in process involving various units from university

Bernama
Updated
9:15 PM MYT

 

KUALA LUMPUR – Universiti Teknologi Mara (UiTM) could potentially lose some RM51.08 million following delays in seeking compensation from 239 scholarship holders who breached their contracts.

According to the Auditor-General’s Report 2021, weaknesses in its compensation claim process against scholarship holders who breached their contracts also resulted in a loss of revenue amounting to RM7.49 million. 

Audit findings conducted on 381 of the 1,496 debtors in breach of contract until December 2021 found that it involved a sum of RM67.08 million. 

“The audit found that a total of 86 out of 381 debtors in breach of contract with a total debt value of RM6.23 million were written off in 2019 by UiTM’s Finance and Development Committee,” the report stated.  

It said the debt write-offs, amounting to RM6.23 million, was due to the university’s failure to take legal action before the six-year time limit, debtors already being declared bankrupt, and the absence of debtors’ files at UiTM’s legal adviser’s office.  

In addition, the report stated that a total of 259 out of 1,496 scholarship holders had breached the contract for failing to complete their studies within the time period set in their agreements, with compensation due amounting to RM52.34 million. 

“UiTM’s delay in seeking compensation against this group of debtors for breach of contract has resulted in UiTM losing revenue amounting to RM1.26 million and potential revenue amounting to RM51.08 million,” the report stated. 

It stated that the delay in preparing paperwork for the approval of UiTM’s Human Resources Career Development Main Committee and the absence of several documents related to the breach of contract of scholarship holders were also identified as the cause of the failure to claim damages. 

The audit report recommended that UiTM must ensure circulars, work procedures and contracts in force are complied with, implemented and efficiently monitored for compensation claims against scholarship holders who breach contracts. 

It also recommended that the university improve coordination, communication and monitoring of work between UiTM’s Career Development Division, Zone 2 Finance Unit, the treasurer’s office and its legal adviser’s office, either at the implementation or top management levels in relation to legal actions and re-collection of public funds. – October 10, 2023

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