PAC recommends stricter financial and investment management of UiTM Holdings, says Mas Ermieyati

KUALA LUMPUR, 30 SEPTEMBER 2026 —

KUALA LUMPUR: The Public Accounts Committee (PAC) has issued a series of stringent recommendations to overhaul the financial governance and investment management practices of UiTM Holdings Sdn Bhd, following a review that identified significant breaches of established financial rules.

These reports highlighted critical weaknesses in the oversight of the institution’s investments and a failure to adhere to mandatory legal procedures regarding the deployment of public funds.

The core of the PAC’s concern centers on the improper channelling of nearly RM260 million into UiTM’s business entities and holding companies. According to Mas Ermieyati, this substantial sum was not managed in accordance with prevailing financial rules and procedures. The primary legal infraction identified was the failure to obtain special approval from the Finance Minister, a requirement mandated by law for such transactions.

The committee’s findings confirmed that this lapse represented a significant deviation from standard financial governance protocols, prompting the need for immediate corrective action to ensure that future investment decisions strictly comply with legal guidelines.

Mas Ermieyati emphasized that the recommendations are designed to strengthen monitoring mechanisms and ensure full accountability within the institution. The objective is to prevent any repetition of the financial governance failures identified in the 2024 reports. She stated that the situation requires immediate improvements to guarantee that any investment decisions and expenditure involving public funds deliver the best return of value.

The committee’s stance is clear: the structural weaknesses in regulatory controls and corporate governance must be addressed to safeguard public resources and maintain the integrity of the institution’s financial operations.

The timing of these comments coincides with reported graft investigations into alleged financial irregularities linked to UiTM Holdings. Mas Ermieyati’s statement underscores the PAC’s role in addressing these concerns through formal parliamentary channels. She noted that the PAC’s findings in 2024 identified critical structural weaknesses in the regulatory controls and corporate governance of the institution’s investment management.

These weaknesses are not merely procedural but are fundamental to how public funds are handled, necessitating a response from both the institution and the oversight bodies.

In her statement, Mas Ermieyati reaffirmed the PAC’s commitment to combating corruption, misappropriation, abuse of power, and the leakage of public funds. She described the committee’s role as a check and balance on the Government, aimed at ensuring transparency, accountability, and integrity in the country’s financial management.

This assertion of authority highlights the PAC’s determination to hold institutions accountable for their stewardship of public money, particularly in cases where significant sums are involved and legal procedures have been bypassed.

The PAC’s collaboration with the Malaysian Anti-Corruption Commission (MACC) has been a key component of this oversight process. Mas Ermieyati expressed appreciation for MACC’s continued commitment to investigating and following up on the findings submitted by the committee. She noted that MACC, which serves as an ex-officio member of the PAC, has demonstrated close and proactive cooperation in examining every aspect of the findings.

This partnership is in ensuring that there are no elements of misappropriation, corruption, or abuse of power left unaddressed, providing a dual layer of scrutiny over the financial activities of UiTM Holdings.

The RM260 million figure cited by the PAC represents a substantial portion of public funds that were directed into UiTM’s business entities. The failure to secure the necessary approval from the Finance Minister for this channelling of funds is a serious breach of the legal framework governing public finance. Mas Ermieyati’s comments indicate that the PAC views this not as an isolated incident but as a symptom of broader weaknesses in information management and oversight.

The recommendations therefore aim to address these systemic issues, ensuring that future financial activities are conducted with the requisite caution and compliance.

The two PAC reports tabled in the Dewan Rakyat in 2024 served as the foundation for these recommendations. These reports identified significant breaches of financial governance and weaknesses in the information management systems used to oversee UiTM Holdings’ investments. By bringing these findings to the attention of Parliament, the PAC has initiated a formal process of accountability.

The recommendations are intended to close the gaps identified in these reports, ensuring that the institution’s financial practices align with national standards and legal requirements.

Mas Ermieyati’s statement on Monday serves as a public reaffirmation of the PAC’s position on the matter. By detailing the specific nature of the breaches and the legal requirements that were ignored, she provides clarity on the severity of the issues at hand. The emphasis on "immediate improvements" suggests that the PAC expects swift action from UiTM Holdings to implement the recommended changes.

This urgency reflects the committee’s concern that prolonged delays could result in further misuse of public funds or continued exposure to financial risks.

The involvement of the MACC in this process adds a layer of legal and investigative rigor to the PAC’s oversight. As an ex-officio member, MACC’s participation ensures that the findings are not only reviewed from a parliamentary perspective but also from a law enforcement standpoint. Mas Ermieyati’s acknowledgment of MACC’s proactive cooperation highlights the importance of inter-agency collaboration in addressing complex financial irregularities.

This cooperation is essential for thoroughly examining the findings and ensuring that all aspects of the case are scrutinized for potential criminal elements.

The PAC’s focus on ensuring the "best return of value" for public funds underscores the economic implications of the governance failures. When public money is channeled into business entities without proper oversight, there is a risk that it may not be used efficiently or effectively. The recommendations aim to rectify this by imposing stricter controls on investment decisions and expenditure.

This approach is consistent with the broader goal of enhancing the efficiency and effectiveness of public sector financial management in Malaysia.

The statement also serves as a warning to other public institutions that the PAC will continue to monitor their financial activities closely. By highlighting the specific case of UiTM Holdings, the committee demonstrates its willingness to intervene when significant breaches are identified. This proactive stance is intended to deter future misconduct and encourage adherence to financial rules and procedures across the public sector.

The PAC’s role as a check and balance on the Government is thus reinforced through its active engagement with institutions that manage public funds.

As the PAC moves forward with its recommendations, the focus will be on the implementation of these measures by UiTM Holdings. The committee’s commitment to ensuring transparency and accountability means that it will likely continue to monitor the institution’s progress in addressing the identified weaknesses. The collaboration with MACC will also continue, ensuring that any ongoing investigations are supported by the PAC’s findings.

This sustained oversight is for restoring confidence in the financial management of UiTM Holdings and the broader public sector.

The events surrounding the PAC’s recommendations highlight the importance of financial governance in public institutions. The failure to obtain necessary approvals and the improper channelling of funds are serious issues that require immediate attention. By taking a firm stance and working closely with law enforcement agencies, the PAC is demonstrating its dedication to upholding the integrity of public finance.

The outcome of these efforts will be a key indicator of the effectiveness of Malaysia’s financial oversight mechanisms in preventing and addressing corruption and mismanagement.

In conclusion, the PAC’s detailed recommendations for UiTM Holdings represent a significant step towards improving financial governance in the public sector. The identification of specific breaches and the collaboration with MACC underscore the seriousness with which the committee approaches its mandate. As the institution works to implement these changes, the PAC’s continued oversight will be in ensuring that the recommended improvements are fully realized.

This process is essential for maintaining public trust and ensuring that public funds are used responsibly and effectively.