Yayasan Selangor suffers RM7m deficit, deputy GM sacked

By Boo Su-Lyn

SHAH ALAM, March 18 — Financial mismanagement caused Yayasan Selangor to chalk up a RM7.41 million deficit from January till November last year, an audit on the state education foundation revealed today.

Mentri Besar Tan Sri Khalid Ibrahim released the audit today and said the foundation has also sacked its deputy general manager Mohd Saifulruddin Sulaiman on February 18.

“Unplanned spending caused Yayasan Selangor to experience a deficit of RM7.41 million till November 2010,” Khalid (picture) said in a statement.

He said the audit done by the internal audit division of the Selangor state secretary’s office had also recommended terminating the services of Mohd Saifulruddin.

“On February 18, 2011, a letter signed by YAB Mentri Besar was issued, directing the termination of the deputy general manager’s (Management) contract effective within 24 hours,” said Khalid, who is also Yayasan Selangor chairman.

The audit report also recommended the sacking of Yayasan Selangor general manager Ilham Marzuki besides his deputy.

“The Board needs to consider terminating the contracts of the general manager and the deputy general manager (Management) because the two failed to safeguard Yayasan’s interests as majority of the decisions looked like they were made for their own interests,” said the audit report.

But Khalid did not mention in his statement if Ilham had been sacked.

Khalid said the Yayasan Selangor board of directors had met on February 17 and decided to sack Saifulruddin for failing to practise prudent financial management.

“Expenditure that is not transparent, prudent or reasonable had caused the cost of Yayasan Selangor’s 40th anniversary celebration to reach almost RM1 million,” said Khalid.

The audit on Yayasan Selangor was done from November 29 till December 1 last year after the Selangor Sultan snubbed the foundation’s 40th anniversary luncheon, which was scheduled last November 15, over its exorbitant cost.

The education foundation then cancelled the luncheon.

Khalid said previously that the luncheon was billed at RM300,000, denying Selangor Umno’s claim that the event would have cost RM800,000.

But the audit report said today that Yayasan Selangor had spent RM996,472 on the overall celebration.

The report revealed that Yayasan Selangor had paid RM387,232 on the cancelled luncheon, RM225,000 on Al-Quran copies, RM206,040 on souvenirs and clothes, and RM178,200 on a fishing competition.

The audit report also said Yayasan Selangor could recover an estimated RM148,500 from the company in charge of the luncheon, but had yet to do so.

The audit report further revealed that the Yayasan Selangor board of trustees had violated the foundation’s memorandum and approved bonuses of RM5,000 for themselves last year.

“According to the Memorandum of Association of Yayasan Selangor paragraph six - ‘no portion thereof shall be paid or transferred directly or indirectly, by way of dividend, bonus, or otherwise howsoever by way of profit, to the members of the Yayasan’,” said the audit report.

“So, board members are not eligible for the bonuses. However, two board members have yet to return the bonuses paid to them,” it added.

Yayasan Selangor’s board of trustees includes Khalid, who is the chairman, former state secretary Datuk Ramli Mahmud, Selangor executive councillor Dr Halimah Ali, Ilham, Datuk Mohd Arif Ab. Rahman, Sulaiman Wak and Haji Mohd Adenan Deraman.

Saifulruddin had ignored Khalid’s order to go on leave effective November 15 2010, according to the audit report.

“The official still attended a meeting on December 3 2010 and the general manager was also at the meeting,” said the audit report.

“The refusal to obey YAB Mentri Besar’s instruction also shows the general manager’s weak integrity,” it added.

The audit report also said Saifulruddin had a bankruptcy notice which he did not inform during his interview before he was hired.

“Hiring an officer who has terrible debts can affect (the foundation’s) trust that transparent financial management will be carried out,” said the audit report.

Ilham reportedly said recently that Saifulruddin had paid his debts.

The audit report pointed out, however, that Ilham was not the interview panel’s first choice for the general manager position.

“The audit finds that the hiring of the general manager did not follow the panel’s decision,” said the audit report.

The audit report noted that the education foundation had purchased three vehicles for RM463,725.32, which were a Toyota Fortuner, a Toyota Camry and a Toyota Hiace van.

“It is found that Yayasan did not fully follow the approval given by buying a Toyota Fortuner car instead of a Proton Saga BLM for the use of the headquarters,” said the audit report.

“Besides that, the auditors were informed that besides the Toyota Camry 2.4V, the general manager also uses the Toyota Fortuner as his official car,” it added.

The audit report further noted that RM12,500 was spent on four handphones for Ilham, Saifulruddin and the deputy general manager (education).

Ilham was given two phones costing RM5,500 while the phones for the other two cost RM3,500 each.

The audit report also viewed with concern 18 resignations and the transfers of one out of three staff last year.

“From March till November 2010, as many as 18 Yayasan staff had quit and 50 had been transferred (33 per cent),” said the audit report.

“(It) shows a process which can paralyse the creativity and excellence of Yayasan Selangor staff,” it added.

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