Royal Perak Golf Club (RPGC), a fully-owned subsidiary company of State Secretary Incorporated (SSI), has not set up an audit and inspection committee.

According to the first series of the 2013 Auditor-General's Report, the internal audit unit (UAD) of the State Secretary's Office also did not audit the company.

"The setting up of the committee is to boost further control on government companies so that the interest of the government as a shareholder can be protected," it said.

It said UAD was to help an organisation in achieving its target through a systematic and disciplined approach to evaluate and determine the effectiveness of all control process and governance.

According to the report, an audit review also found RPGC had yet to sign the Corporate Integrity Pledge and did not implement the Corporate Integrity Pact in the business of acquisition as stipulated in the Treasury Circular in an effort to prevent coruption.

Although, RPGC earned profit for three continuous years since 2010, its net  profit marjin dipped, namely, from 18 percent in 2010 and 2011 to 15 percent in 2012 for every ringgit of sale, it said.

RPGC also did not pay dividends to the share holder, it said.

"Based on its financial statement, the company had recorded profits in the financial years 2010, 2011 and 2012 amounting to RM1.34 million, RM1.28 million and RM0.51 million respectively while the accumulated profit of the company as of end of the financial year 2012 was RM3.26 million.

"An audit inspection found that since the company was set up (in 2006) there was no dividend payment to the state government and no explanation why the dividend was not paid," it said.

- Bernama