Sunday, March 20, 2011

Selangor welfare foundation integrity in question


Lack of transparency and questionable expenditure. That about sums up the results of an internal audit on Yayasan Selangor or the Selangor Foundation, marked by controversy over its expenditure for the foundation’s 40th anniversary celebration.

In a statement on Friday, Mentri Besar Tan Sri Abdul Khalid Ibrahim said the foundation recorded a deficit of RM7.41 million from January till November last year due to unplanned expenditure.

"Lack of transparency, improper and unreasonable expenditure resulted in the cost of the anniversary function to reach almost RM1 million and full payments were made to the event organiser even though the activities had yet to be implemented," Abdul Khalid said.

The internal audit follows the anniversary luncheon cost debacle of RM387,232 (and overall cost of RM996,472) which caused the Sultan of Selangor to snub the function, saying the money could have been better used to benefit the poor.

Abdul Khalid, the foundation’s chairman, said the board of directors unanimously decided at a Feb 17 meeting to sack deputy general manager Mohd Saifulruddin Sulaiman due to financial mismanagement.

A letter issued on Feb 18 ordered that his contract be terminated in 24 hours.



Abdul Khalid said the report highlighted that general manager Ilham Marzuki had approved allowances that were not supposed to be paid to board members; and there were 12 important decisions that were made without knowledge and approval of the Selangor Government.

The foundation, a welfare arm of the Selangor government, was established in 1970 to provide educational opportunities such as facilities, scholarships and training for underprivileged children, but over the years had been making questionable fiscal decisions.

Among other irregularities highlighted in the report are:

> The foundation had hired Plus Uni-Tech Sdn Bhd as a panel to provide spare parts, repair and maintenance services for its vehicles. From January to November last year, the foundation spent RM6,029,790 on maintenance and repairs, with RM1,501,771 for the month of November only;

> RM5,000 in bonuses were paid to each foundation member last year although the awarding of bonuses to members is not allowed under the Memorandum of Association of Yayasan Selangor.

> A two-month bonus was paid to each of the foundation’s employees last year without approval from the State Government, despite the deficit faced by the foundation;

> Allowances of RM3,000 were paid to each of the foundation’s Selangor Property Development committee members;

> Mohd Sailfulruddin had failed to inform the foundation’s interview panel that he had been served with a bankruptcy notice and was promoted from financial manager to deputy general manager within two months of employment while Ilham was promoted within a month;

> SDF Media and Event Sdn Bhd had been appointed directly for an Aidilfitri function at a fee of RM303, 476. Yayasan Selangor had paid RM266,950 (95% of payment) to the company within two days of appointment. The remaining RM14,050 and an additional cost of RM22,476 were also paid;

> YS had purchased a Toyota Fortuner at RM190,155.21 for the foundation’s use although Abdul Khalid only approved RM90,000 for a Proton model;

> A 40th anniversary celebration fishing event cost RM179,000 but the foundation only managed to raise RM37,630 in participation fees. The event attracted the interest of fewer than 700 fishing enthusiasts although its target was 1,200 people.

> On the orders of Mohd Saifulruddin, RM16,060 of the capital gained from the participation fees was channelled to the Yayasan Selangor Association’s bank account, without approval from the board of trustees. He has yet to surrender the remaining RM21,570.


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