Audit shows clear power abuse in payout to Khalid’s ex-aides, says new Selangor MB

(Malay Mail Online) – A full audit on severance payments to former aides of Tan Sri Khalid Ibrahim has shown clear elements of power abuse, Selangor Mentri Besar Azmin Ali said today.

Azmin declined to comment on the actual amount of the severance payments to his predecessor’s aides, but said the audit report showed a clear breach of rules and regulations in the payout process.

“Yes, it is too clear… there is abuse of power not only involving the quantum sum of money but also the process,” he told reporters when met after the Selangor state economic council (MTES) meeting.

According to the report, the payments were transferred within “such a short period of time”, Azmin added.

He said the new management of Mentri Besar Incorporated (MBI) will decide on the next course of action when they are sworn in on December 1.

“Stern action will be taken,” the Bukit Antarabangsa assemblyman said.

Lawmakers from both sides of the political divide will be pressing the state government to reveal details on severance payments made to former MB  Khalid’s aides when the the Selangor legislative assembly convenes this November 24.

Azmin replaced Khalid as Selangor mentri besar in September.

Last Sunday, Azmin said his administration has already completed a full audit on severance payments made to Khalid’s ex-aides under state-owned Mentri Besar Incorporated (MBI) ― after allegations they were issued severance payments amounting to a staggering RM 2.5 million.

Malay Mail Online understands that four state assemblymen- from Pakatan Rakyat (PR) and (BN) are expected to query the Selangor government and MBI over the matter during the upcoming state sitting.

Formal questions on the severance payment have already been submitted to the Selangor Speaker’s office in time for it to be addressed and answered during the Selangor assembly sitting.

“Four questions, to be raised by BN, PR on the severance payment,” a source familiar with the matter disclosed to Malay Mail Online.

A Selangor executive councillor refused to disclose validity of the purported RM2.5 million amount, but said that Azmin’s administration was “actively” investigating the matter.

“The question is not of the alleged amount, but whether they actually deserve a high fee as severance payment,” the exco member spoke to Malay Mail Online on the condition of anonymity.

Khalid has claimed ignorance over allegations that his former aides were issued severance payments amounting to a staggering over RM2.5 million after he stepped down as Selangor mentri besar.

According to The Star daily, the former state chief executive appeared surprised when informed of the figures, and said he was not sure how much the eight aides were paid.

“If the calculation is correct, then it’s correct but I don’t think so,” Khalid was quoted saying after a function in Sungai Besi on Saturday.

The Bandar Tun Razak MP then explained that his aides were given payments under a “voluntary separation scheme” (VSS) that was offered to them upon his departure from office.

He said the decision was made by the state-owned Mentri Besar Incorporated (MBI), and was even presented to the state executive council, the newspaper reported.

“The board is made up of three people ― the mentri besar, the state secretary and the state financial officer,” he was quoted saying.

The embattled leader also reportedly said that MBI had cash reserves of up to RM112 million and that the VSS payments to his aides took up no more than two per cent of the amount.

“I followed all procedures, they can be audited,” The Star quoted him saying.

On Friday, Seri Andalas state assemblyman Xavier Jayakumar had hinted at the matter on microblogging site Twitter.

“Sel gov has instructed its state investment arm, MBI, to recover RM2.5mil given to former aids to TSKI?” the PKR political bureau member wrote using his Twitter handle @xavierjayakumar.

But Xavier did not write any further tweets on the same issue.