Kolej Islam Teknologi Antarabangsa (Kitab), set up by Usaha Tarbiah (Pulau Pinang) Sdn Bhd (UTSB), a wholly-owned subsidiary of the Penang Islamic Affairs Council, has been given "less than satisfactory" marks by the auditor-general.

He was referring to the financial and corporate governance performance of UTSB. It was formed on May 12, 2004 with authorised capital of RM5 million and paid-up capital of RM4,003,004.

In the first instalment of his report for 2013, the auditor-general also noted that Kitab has been employing lecturers without the relevant permits.

In addition, three of its five diploma programmes have been awarded only 'provisional' accreditation by the Malaysian Qualifications Agency.

No application was made to gain accreditation for three degree programmes, the report said.

Enrolment for three of the five diploma programmes was less than satisfactory, according to the report.

Only 27 students - or 25 percent - of the 528 enrolled had completed their studies within the minimum seven-semester period, while the rest took eight to 14 weeks.

The report also revealed a rise in tuition fees owed because UTSB has failed to recover the arrears.

The auditor-general suggested that Kitab implements a standard operating procedure in all departments and ensure that conditions set by the Education Ministry and the Malaysian Qualifications Agency are met.

"Set up an effective method of collecting outstanding tuition fees to reduce the total arrears, and improve the facilities and safety of student hostels," Kitab was further told.