More shockingly, the general manager of the resort had incurred claims to the tune of RM433,690 for accommodation at the Royal Chalet, over a 10-month period last year. Pic by NSTP/ASYRAF HAMZAH

KUALA TERENGGANU: State-owned Duyong Marina Resort reported accumulated losses of nearly RM20 million, two years ago.

More shockingly, the general manager of the resort had incurred claims to the tune of RM433,690 for accommodation at the Royal Chalet, over a 10-month period last year.

This was despite the fact that the GM had resigned from the post to take up a similar position at the newly opened PB Hotel, another state-owned project, at Paya Bunga Square in the city centre.

The resort also failed to recoup debts over the years from its clients amounting to RM494,610 up until Oct 24, last year.

This was revealed in a report released by Auditor-General Tan Sri Madinah Mohamad.

The four-star resort, wholly-owned by the Lembaga Tabung Amanah Warisan Negeri Terengganu, incurred a pre-tax loss of RM1.35 million to RM1.75 million for 2014, 2015 and 2016.

This resulted in an increase in accumulated losses for the company from RM16.01 million in 2014 to RM19.64 million in 2016, or an increased loss of RM3.63 million (or 22.7 per cent).

The chalet-designed resort in Pulau Duyong Besar was established on March 26, 1998, with an authorised capital of RM5 million and a paid-up capital of RM2.1 million.

It has 97 rooms, with rates of between RM238 to RM2,880 a day.

It is helmed by an operations manager who resigned early last year, and employed 108 permanent and five temporary staff.

“The losses were due to inefficient management and not functioning to expectations.

“Other factors were that the resort was not properly run by the operations manager who has no executive powers. Its room, food and beverage sales targets were not achieved and no audit was carried out as well as improper board of directors,” said the report.

To improve business, the report suggested that the resort’s facilities be refurbished, and switch its focus from mere tourism to family packages, reunions, retreats and team-building activities.

“Additionally, there should be regular scrutiny on the performance of the resort’s general manager and board of directors, by taking corrective measures to ensure profits,” said the report.

Duyong Marina Resort’s main income from room, food and beverage sales was on the decline for three years – down from RM7.43 million in 2014 to RM4.33 million in 2016.

Room sales dropped RM0.77 million in 2015 and 2016, while food and beverage revenue declined by RM0.16 million (or 4.5 per cent) in 2015 to RM1.37 million(40.1 per cent) in 2016.

Maintenance of rooms, food and beverage accounted for the highest costs of between 37.6 per cent and 48.3 per cent of the total expenditure for 2014, 2015 and 2016.

The second largest was expenses for administration which included salaries, utilities, maintenance, repair, landscape and depreciation of property.

The report discovered that the resort, at the Sungai Terengganu river mouth, was built mainly on wood which was easily ‘attacked’ by the salty sea water and termites.

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