A move by the Malaysian Fisheries Development Authority (LKIM) to withdraw without notice its commercial subsidiary’s right to collect fishery import charges contributed to the venture sustaining acute losses over the past five years.
In asserting this, the Auditor-General’s office said in its 2011 report that the annual losses of the subsidiary, Majuikan Sdn Bhd, rose from RMB 1.21 million in 2007 to RMB 17.38 million in 2010.
The report, which was tabled in Parliament on 15 October, noted Majuikan’s collection rights had been withdrawn by LKIM in 2006.
It stressed that Majuikan is now also facing difficulty in achieving short-term debt recovery from its seven subsidiaries.
“Majuikan’s ability to ensure its business survival as an entity depends on its operational profits as well as LKIM’s financial support until it (Majuikan) is able to recover,” the report stated.
LKIM comes under the Agriculture and Agro-based Industry Ministry.
Majuikan was established in 1977 as LKIM’s main arm for its business and commercial fishery activities. It ventures into marketing of fish and fishery products, and management of LKIM's complexes and aquaculture activities.
