MyCreative Ventures (MyCV) has clarified that there has been “inaccurate interpretation” of the major audit findings in the latest Auditor-General’s (AG) Report 2018 Series 1 by third parties and commentaries on social media.
The report stated that the investment arm under the Ministry of Finance (MoF) had invested RM214.24 million in the money market without obtaining prior approval from MoF. The funds were meant for MyCV’s private debt and private equity programmes which were set up to help companies in Malaysia’s creative industry.
In a statement to A+M, MyCV clarified that it approved a total of RM213.84 million under the private debt programme to 121 companies in the creative sector. It also quoted the audit report, stating that from 2016 to 2018, its private debt programme has been managed efficiently as it met two KPIs, with application approvals amounting to 109.3% and total financing amounting to 111.1%. MyCV added that its initiatives including the Cultural Economy Development Agency and the monthly curated creative platform RIUH have also been successful in growing and developing companies in Malaysia’s creative industry.
With regards to MyCV making investments without seeking MoF’s approval, it clarified that the decision was approved by the risk management and audit committee and members of the board of directors were also notified. MoF (Inc) also stated that the surplus investment of the funds into the money market does not conflict with MoF’s approval. MoF (Inc) is a corporate body established under the Minister of Finance (Incorporation) Act 1957. The act offers MoF (Inc) the authority to enter into contracts, acquisitions, purchases, possessions, holdings and maintains tangible and intangible assets.
Meanwhile, MyCV also clarified that its main activity is to conduct venture capital business in the form of loans and investments to companies in Malaysia’s creative industry. It explained that majority of the loans are in the form of revolving credit, allowing borrowers to withdraw money as long as it does not exceed the ceiling value of the loan designated during the period.
“The excess funds were invested in a temporary money market while MyCV was waiting for borrowers to make cash withdrawals. Investments made by MyCV against the excess funds allocated are in accordance with the priorities of principal safety, liquidity and returns,” MyCV said.
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