Overall waqf properties have been poorly managed by the Islamic religious councils in Malacca, Penang, Kedah and Selangor, according to the third series of the 2014 Auditor-General's Report.

The audit discovered that the Malacca Islamic Religious Council (Maim) had not declared all waqf properties in accordance to Section 83 of the Administration of the Religion of Islam (State of Malacca) Enactment 2002 and action was not taken as Maim management was not aware of the requirement.

The report also found that seven projects planned by Maim for waqf development in the past 10 years were stopped for various reasons, among them, non-strategic location and unsuitable terrain; located on hill slopes; and lack of access roads including encroachment on waqf land.

The report presented in Parliament today also mentioned that 22 waqf premises had no documents on lease agreement and 19 of the 63 lease agreements had expired and had not been renewed since 2010.

As such the report recommended that Maim implemented a comprehensive plan for all waqf properties which had the potential for generating income to provide better benefits within the prescribed period.

The report further mentioned that the Penang Islamic Religious Council (MAINPP) only entered information on 1,095 of the 1,210 waqf properties in all districts as at 2011.

"Most information such as names of benefactors, property ownership, purpose of donation and existing facilities on the waqf land have not been updated ," according to the report.

The audit also found that rental rates of several waqf land in the state were very low and the building condition did not commensurate with the rent paid to MAINPP.

In addition, the audit found total rent arrears had increased from 2012 to 2014 with an amount of RM4.56 million involving 702 tenants based on yearly rent arrears trend.

The report recommended that MAINPP revise the rental rates of waqf properties and to take action against tenants who refused to settle payment.

This in addition to providing a detailed plan in the implementation of every project to ensure value for money, avoid wastages, meet the requirements of benefactors and properties were used to the best advantage.

Trespassing cases

Waqf property management by the Kedah Islamic Religious Council was also weak in terms of document management, monitoring and lease management.

The report said that several waqf properties were not gazetted, property ownership not transferred to Maik, properties not developed and poor monitoring had led to encroachment activities on waqf land.

Among others, the report recommended that Maik streamline the administrative process of all waqf properties including registration of ownership and conduct constant monitoring of undeveloped land to prevent encroachment as what had happened at Jalan Limbong Kapal in Kota Setar.

The report said management of the waqf property in Selangor was also unsatisfactory with 87.6 percent of the property registered with the Selangor Islamic Religious Council (Mais) not being gazetted.

It found that the register on waqf property in Selangor was not utilised beneficially besides cases of trespassing being reported.

The report said 27.5 percent of the waqf property had yet to be registered as being owned by Mais.

- Bernama