MARA, the property pushover
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| Money always run away? |
ANOTHER BRICK IN THE WALL
There is an old sinister interpretation to the acronym MARA or Majlis Amanah Rakyat (MARA). They say then it means Money Always Run Away. And the person that gave that interpretation actually ran away with commissions from contracts given out to Chinaman suppliers.
MARA is a purpose-incorporated Federal Government agency by a Parliament act to assist the development of Malays. It has been successful in many ways, especially education.
For instance, 54 MARA Junior Science Colleges (MRSM) have been built and tens of thousands of Malays benefited in the various tertiary level financing programs, local and abroad. This and it’s scholarship program have become feeder of Malay professionals to industries and institutions.
Unfortunately, as the interepretation say, MARA has been an organization where so many individuals took advantage of and made it a push-over. MARA has and is acquiring properties and assets that it should not have interests in the first place and should not be in business.
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| Kelab Rahman Putra, Sg Buloh Selangor |
One of the notorious case is the MARA acquisition into the Bukit Rahman Putra property development project in the late ‘80s, when Mohd. Tamrin Ghafar was the Chairman.
MARA paid over RM 70,000.00 per golf membership where 260 golf membership of Kelab Golf Rahman Putra was transferred to MARA and acquired 100 acres from the 760 acres development.
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| Ashley Hotel, London |
Then the acquisition of 53 room Ashley Hotel near Paddington Station, London by MARA Inc. two years ago.
Why MARA goes into the hotel business and in London is baffling many.
MARA has neither the expertise in the inn business nor understands anything remotely about property in London. In the first place, they never did were into the inn business in Malaysia.
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| 746 Swanston Steet, Melbourne |
The most recent is MARA Council’s approval to dish out RM140 million of soft loan to MARA Inc. to acquire an accommodation building in the neighbourhood of Carlton, Melbourne, Victoria.
MARA Inc. is supposed to acquire 746 Swanston Street, Carlton, Melbourne VIC 3053, Australia. Currently, the building lease twin-sharing or single rooms at the rate of AUD 160 and AUD 210 per week, respectively.
Why MARA is doing this especially when the sponsorship program for students to Australia has been reduced drastically?
If the acquisition of this property is for the benefit of MARA sponsored students in Australia, then the next question shall be how many students do MARA sponsor to study in Australia annually.
Wouldn’t these sponsored students attend universities all over New South Wales, Queensland and Western Australia too?
The fact that 746 Swanston St. is a building where there is 313 beds. Unless MARA intend to have about 100 sponsored students to Melbourne University and RMIT annually, the acquisition of the accommodation building is about making money from a market where MARA Inc. has little understanding about.
RM 140 million for a property investment abroad by a wholly own company of a Federal Government socio-economic development agency is definitely mind boggling.
MARA should be looking into acquiring high street commercial spaces and develop the Bumiputra retail opportunities first instead of looking at and acquiring properties abroad.
