PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC) and Majlis Amanah Rakyat (Mara) have initiated investigations into the latter’s Australian property deal even before Australian newspaper The Age exposed the multimillion ringgit deal.

Mara chairman Tan Sri Annuar Musa said Mara had begun investigations into the purchase of a hostel in Melbourne by one of its subsidiaries two months ago.

“We were in the midst of conducting an internal auditing process on Mara Inc when the report by The Age came out,” he told a press conference yesterday.

“So, it was not shocking news for us as Mara was already taking action. But we will take the report from The Age as additional information to help our ongoing investigation into Mara Inc,” he said, adding that two Mara subsidiaries are being investigated by the group, including Mara Inc, which has been implicated in the Melbourne property buy.

Annuar, however, declined to disclose what had triggered the internal audit into Mara Inc, which has been accused of overpaying by A$4.75 million for the Melbourne hostel in 2013.

“The audit started two months ago, but we have yet to receive a report from Mara Inc. However, the other subsidiary being audited has already submitted its report and it has been presented to the council,” he said.

As part of upholding its integrity, Annuar said, Mara performs internal probes into its subsidiaries from time to time and Mara Inc was one that came up because of several red flags.

“We were very concerned. We saw certain things that had to be looked into. I visited the property last year and when I came back, I highlighted a few things to the council.

“We will now continue the audit, and I have asked Mara Inc to give me a written and detailed explanation of the allegations within the next seven days. And in 14 days, the Mara council will meet to discuss our next step,” he said.

Annuar said the council will also discuss how to improve the transparency in its dealings and maintain its integrity.

“We will also decide on whether to suspend the people who were allegedly involved in the deal,” Annuar said.

When asked if it was Mara’s procedure to use a shell company to purchase properties overseas, Annuar said it was one of the options used by its subsidiaries.

“To the best of our knowledge, and based on information we received, the property was bought at a fair market price,” he said, adding that Mara Inc has assets worth RM600 million in Australia and the United Kingdom. “Their businesses have been doing well and have returned profits beyond our expectations.”

Meanwhile, MACC deputy chief commissioner Datuk Seri Mohd Shukri Abdull told The Edge Financial Daily that the commission has been on the trail of the Melbourne property deal for a month, and that his officers have travelled to Melbourne to gather evidence on the deal.

However, he stressed that no Malaysians have been questioned yet.

“My officers are now in Melbourne working closely with the Australian authorities. We have not interviewed anyone yet. My officers are coming back this Saturday with documents. Then we will plan further action,” Mohd Shukri said.

The Age has alleged that three senior Mara executives “overbid” for the Dudley International House, from A$17.8 million to A$22.5 million, with the difference pocketed as bribes.

The paper also reported that Mara paid A$63.5 million to purchase three other properties in Melbourne via shelf companies.

This article first appeared in The Edge Financial Daily, on June 25, 2015.