PETALING JAYA: Two Board of Trustees (LPA) members at the National Council of Professors (MPN) misused funds totaling RM373,516 for operational financing of two private companies, the Auditor-General’s Report has revealed.
According to the report, MPN’s chairman and deputy chairman, who also held roles as shareholders in the two companies, failed to declare their interests, violating Act 777.
“The ownership of shares by the General Secretary/President/Chief Executive Officer (KPE) of MPN in Company I and Company II, as well as the Chairman’s role on the Board of Directors of both companies, indicates a conflict of interest,“ the report stated.
The two members received fixed allowances totaling RM207,000 without proper approval.
“The Audit Review of payment vouchers revealed that, from March 2022 to January 2024 (23 months), the Chairman and Deputy Chairman received fixed monthly allowances of RM5,000 and RM4,000 respectively, without approval from the responsible minister.
“The Chairman received a total of RM115,000, and the Deputy Chairman received RM92,000,“ it added.
The report also uncovered several instances of unauthorised financial transactions.
On January 16, 2023, MPN entered into an Operational Financing Agreement with Company I, stipulating an advance for operational purposes to be repaid by December 31, 2023. However, this agreement was not communicated to LPA members.
“An advance payment of RM71,000 for an international student recruitment programme was disbursed in the name of Company I’s CEO rather than the company itself.
As of February 29, 2024, Company I had not repaid MPN for the operational financing received.
Other unauthorised payments included an honorarium of RM399,000 for a research fellow and RM82,500 spent on elevator installation and office renovation.
The audit also revealed issues with grant management including delayed recognition of grants as revenue totaling RM2.43 million, and corporate credit card payments totaling RM98,076 with advances of RM20,000 made without supporting documents.
Additionally, RM0.92 million was spent not according to the approved grant purpose, while RM475,000 in allocated funds were left unused.
“The Audit Review found that a total of RM475,000 of the received allocation was not used for expenses related to publications (RM100,000), fund channelling to clusters (RM135,000), chapters (RM210,000), and special programs (RM30,000),“ it stated.
The audit also found that MPN lacks an internal audit function, contrary to MCCG 2-21 practice 11.1.
“Internal audit serves as a crucial advisory to Audit Committee (JKA) for identifying internal process weaknesses and implementing remedial actions,“ it stated.
