THE Malaysian Islamic Economic Development Foundation (YaPEIM) board of trustees’ chairman Mohd Daud Bakar today admitted the foundation’s previous management had misappropriated funds meant for the Islamic body.
Speaking to the media, Mohd Daud said following the exposé, the board of trustees (LPA) has restructured all committees under YaPEIM in order to improve the foundation’s administration.
“Based on an audit report as well as LPA’s own initiative to track down mismanagement since November 2018, the LPA has identified several wrongdoings and negligence coming from the foundation’s management.”
He said the problems are being addressed and they are cooperating with auditors who are in the process of formulating new financial controls to prevent future misappropriation.
Mohd Daud said media reports on high legal fees, expensive bonuses and gold pawn scandals were old cases involving YaPEIM’s old LPA, adding that the new LPA has looked into the matter.
“We are aware of the issue involving the legal fees, bonuses and the gold pawn scandal. It happened under the watch of YaPEIM’s former LPA.
“The new board will be taking the necessary action.”
Mohd Daud’s statement today was the opposite of what was said by YaPEIM’s head of legal department Adawiah Abdul Samad said on Sunday.
She told The Malaysian Insight that there was no wrongdoings involving former prime minister Najib Razak’s aide, adding that the legal fee paid to the aide did not even reach RM500,000.
The legal fees, which was earlier reported to be close to RM1 million, was instead paid from YaPEIM’s general account, said Adawiah.
“We deny the accusation. YaPEIM had never used the money meant for orphans to pay for Najib’s aide who was a former director here.
“The legal fee did not even reach RM1 million, it was not even half a million.
“The payment came from the general account that was sanctioned by YaPEIM’s board of trustees,” the legal officer said after a closed-door meeting of the foundation’s top management over the weekend.
The Malaysian Insight reported last week that funds totalling RM1 million from YaPEIM to provide aid for orphans were misappropriated to pay legal fees for one of Najib’s aides.
The report was published after The Malaysian Insight had sighted confidential government documents on the alleged misappropriation of funds at the Islamic institution.
According to discussion notes on the financial expenditure of YaPEIM, the money was channelled to settle legal fees to the aide, who was a director for YaPEIM in 2017.
In the documents, the aide was found to have made payments exceeding RM1 million in several tranches to two law firms, in small amounts each time.
THE MALAYSIAN INSIGHT