Federal govt records RM112.53 mln loss on disposal of astronautic shares - Audit report

KUALA LUMPUR: The federal government suffered a loss of RM112.53 million on the disposal of Astronautic Technology (M) Sdn Bhd shares, where the nominal value of shares worth RM112.58 million was sold for RM50,000.

The disposal of Astronautic Technology shares at a nominal value of RM50,000 was based on the net present value where all the company's assets and liabilities had been zeroised. Accordingly, the disposal was based on goodwill only, according to the federal government's financial analysis by the national audit department.

"The disposal of the shares was agreed upon in the Cabinet meeting on Aug 14, 2019. This is because there is no strategic need for the federal government to continue to own Astronautic Technology in the agenda of empowering the country's space industry through the development of remote sensing satellites," said the report.

Astronautic Technology is a wholly owned company by the Malaysian government under the Minister of Finance Inc., supervised by the Ministry of Science, Technology and Innovation.

Its primary mandate is to develop space and satellite technology, focusing on research and development, and employing advanced and innovative technologies for the space industry.

-- BERNAMA