Audit finds Yayasan Selangor spent almost RM1m on anniversary, not RM300,000
By Boo Su-Lyn, The Malaysian Insider
SHAH ALAM, March 18 — Yayasan Selangor actually spent almost RM1 million on its controversial anniversary celebration last year before cancelling the event, which was initially budgetted for RM300,000, an audit revealed today.
The Selangor education fund cancelled its 40th anniversary luncheon in November 2010 after the state Ruler snubbed it over its exorbitant cost.
“According to Yayasan’s records, the expenditure for the activities cost RM996,472,” said the audit report by the internal audit division of the Selangor state secretary’s office today.
The report revealed that Yayasan Selangor had spent RM387,232 on the cancelled luncheon, RM225,000 on copies of the Quran, RM206,040 on souvenirs and clothes, and RM178,200 on a fishing competition.
“The audit finds that Yayasan has yet to take any action to recover the expenses,” said the report.
It added that Yayasan Selangor could recover an estimated RM148,500 from the company in charge of the luncheon.
The report pointed out that Yayasan Selangor did not have a budget for the anniversary celebration.
“The planned activities were on the suggestion of the deputy general manager (Management) and approved by the general manager,” said the report, referring to Mohd Saifulruddin Sulaiman and Ilham Marzuki respectively.
“The celebration programme was not brought to the board meeting for consideration and approval,” it added.
Khalid, who is the Selangor mentri besar and Yayasan Selangor chairman, said last November that the luncheon was billed at RM300,000, denying Selangor Umno’s claim that the event cost RM800,000.
Khalid said in a statement today that Yayasan Selangor sacked Saifulruddin on February 18 for financial mismanagement.
The report also recommended terminating Ilham’s services, but Khalid did not mention if the general manager was also sacked.
Financial mismanagement caused Yayasan Selangor to chalk up a RM7.41 million deficit from January till November last year, said the report.
The report also said Yayasan Selangor should not have given a two-month bonus to its staff for 2010 in view of its financial status.
“So, the bonus payment is not right as Yayasan had a cash deficit totalling RM2 million from January till July,” it said.
Yayasan Selangor had estimated 1,000 guests for the anniversary luncheon that was scheduled on November 15 last year, said the report.
The report added that Yayasan Selangor had paid a 95 per cent deposit totalling RM270,750 before the event to Tetuan Drift Z Enterprise, the company in charge of the luncheon.
“Examination of payment vouchers found that Yayasan (also) paid almost the full payment, which is RM178,200 (99.5 per cent), before the (fishing) competition was run,” said the report.
“According to calculations, the auditors found that the amount of money collected from the competition totalled RM37,630. If this amount is compared to the total expenditure, it shows that Yayasan had experienced losses in organising this competition,” it added.
The fishing competition, which was held last November 14 in conjunction with Yayasan Selangor’s anniversary, drew about 700 participants who paid RM50 per fishing rod, said the report.
The audit report revealed other functions organised by the education foundation last year that ran into hundreds of thousands of ringgit.
Yayasan Selangor spent RM303,476 on an Aidil Fitri function last October.
“The auditors believe that the cost of this function is unreasonable and a wastage to Yayasan,” said the report.
Yayasan Selangor also forked out RM167,400 on a buka puasa function last August for 2,300 guests.
“But the information obtained showed that the total number of guests was only 1,440 people. The auditors are also suspicious on how the function organiser could immediately estimate and prepare food for 800 guests who did not get food at the function,” said the report.
“The auditors are also suspicious about the company’s claims for electricity and water totalling RM5,000. As far as the auditors know, the rental of the MBPJ hall includes the electricity and water bill,” it added.
The audit report also criticised the education foundation for paying allowances to its staff to attend meetings.
“From June till October, allowances totalling RM11,750 were paid to members… of the tender and tender evaluation committees,” said the report.
