Thursday, 11 October 2012

‘We want action, not excuses, against MPC’

‘We want action, not excuses, against MPC’
By Chua Jui Meng
The MACC has the dubious record of shying away from cases involving BN leaders and their supporters or NFA (No Further Action) when it acts against BN cronies.

THE Barisan Nasional (BN) government must stop treating Malaysians as fools and act swiftly against those who plunder the national coffer.
The more it tries to cover up financial scandals, the deeper the graves are dug.
I am referring to the latest financial scandal which I had blogged titled “BN starts big-time trampling on the weak, poor, needy ( on Oct 5, 2012.
Then it gets Dumb and Dumber (pun intended) with theSun report (reproduced below) today quoting the Malaysian Paralympic Council (MPC) and claiming that its RM4 million investment in events management company, Paralimpik Ventures Sdn Bhd (PVSB), failed due to the 2008 global economic downturn.
MPC general manager Syed Mahadzir Syed Yassin is further quoted in a statement that PVSB had, however, assured MPC that the money will be returned.
 Zainal Abidin (with songkok) is seen here with Prime Minister Najib Abdul Razak.

 The damning statements require the Malaysian Anti-Corruption Commission (MACC) to act swiftly.
In the first place, returning the money is not the issue. It is the misuse of trust funds that require action.
Can I rob, when caught, say I will return the loot, and all is dandy?  What utter nonsense is this?
MPC also has no business investing into PVSB, helmed by its president Zainal Abidin Abu Zarin and his family. Wooo … isn’t this familiar with the Shahrizats’ Cowgate!
Isn’t this a clear case of conflict of interest?
Allocations to MPC are to be used solely to promote the interest of the physically challenged in the sports arena, not for investments.
And why is the MPC backtracking when it had said the losses would be written off? Is the heat getting unbearable?
Again, I reiterate, why is the MACC not acting? Who is MACC protecting?
And, what happened to the probe it conducted on the MPC for the same issue last year? Why the deafening silence?
Just like the Cowgate, it looks like Prime Minister Najib Abdul Razak’s administration is trying very hard to cover up this scandal and bungling it big time again.
The rakyat (people), already extremely restless with the unabated expose of such financial scandals, are crying out for more accountability of trust and public funds.
What with the national debt at a staggering RM800 billion, as revealed by Deputy International Trade and Industry Minister Mukhriz Mahathir.
We are now more worried about Malaysia heading towards the direction of Greece but the BN continues to plunder the country’s wealth.
Reproduced below is theSun’s report:

Friday, 12 October 2012 07:24
MPC: RM4mil loss due to 2008 economic downturn NOT CORRUPTION

PETALING JAYA - The Malaysian Paralympic Council (MPC) claims that its RM4 million investment in events management company, Paralimpik Ventures Sdn Bhd (PVSB), failed due to the 2008 global economic downturn.
MPC general manager Syed Mahadzir Syed Yassin said in a statement today that PVSB has, however, assured MPC that the money will be returned.
Responding to theSun’s front page report ‘Goodbye RM3.8 million’ on Oct 4, he said MPC had formed a steering committee to monitor the recovery plan for the investment, with a view to regaining the capital latest by 2014.
theSun’s report had cited minutes from the MPC’s Sept 29 annual general meeting (AGM), where the executive board had told the general body it had decided on Sept 23 to write off RM3.8 million out of the RM4 million due to “irrecoverability” of the investment.
However, Syed Mahadzir claimed the ‘write-off’ is only an accounting term describing a temporary gap in accounts – in this case, “whilst recovery initiatives are being carried out.”
“The sums recovered shall be accounted as gain, income or profit. Write-off here does not mean total loss, or to be forgotten entirely, or not irrecoverable implicating irresponsibility, personal gain or irregularity,” said Syed Mahadzir adding that the word ‘irrecoverable’ used in theSun’s report was misleading. (The word ‘irrecoverable’ was quoted from the minutes of the Sept 29 AGM, a copy of which had been made available to theSun.)
MPC’s RM4 million investment in PVSB in 2008 had come under scrutiny last year, as the events company is helmed by MPC president Datuk Zainal Abidin Abu Zarin and his family.
Other directors named are one Muhamad Wahbullah Abu Zarin, Zainal Abidin’s two sons, Idi Irwan and Ilia Ikhwan and MPC secretary-general Kassim Abd Rahman, who is listed as holding 10% of the shares, and Idi the remaining 10%.
Commenting on this, Syed Mahadzir said PVSB was regarded as the business arm of MPC, and was approved by MPC in 2000.
“MPC was very aware and in full knowledge of PVSB’s list of shareholders and board of directors, its roles, responsibilities, limitations and relationship between PVSB and MPC as laid down and mutually agreed upon by both parties,” he said.
Syed Mahadzir added that the move had been lauded by even government representatives as a solution to MPC’s financial woes that restrict its movement.
Syed Mahadzir said the minutes of meetings in 1999 and 2000 relating to the formation of PVSB, the PVSB-MPC relationship and MPC’s approval had been made available with explanations to the Sports Commissioner (three times) and the Malaysian Anti-Corruption Commission (five to six times) last year.
His statement did not divulge any details as he claimed the minutes were confidential and could be made available only through approved channels.
Syed Mahadzir said MPC’s decision to invest RM4 million through PVSB was purely to increase its savings and reserves up to possibly RM10 million at the closure of the Gerakan Paralimpik Negara programme.
“However, the investment met with failure due to the 2008 global economy downturn which affected many other organisations and investors.
“PVSB was no exception. The value dropped to about 40% when PVSB pulled out, and was told that it may take years to see recovery without certainty,” he added.
He said the investment was presented clearly with explanation and justification to all members present to be scrutinised.
Syed Mahadzir said Prof Datuk Dr Chandra Sekaran, who had been quoted by theSun, had asked questions related to the issue during the AGM on Sept 29.
“After a lengthy explanation by the external auditor and other members from the floor, he (Dr Chandra) himself voted on the motion to “write off with justification” as advised by the external auditor in compliance with accounting practice,” he added.
When contacted, Dr Chandra told theSun the general body never agreed to the ‘write-off’, but had insisted that a recovery plan be laid out instead.
“The general body only agreed to a recovery plan, and it agreed because the president had pleaded with the members to approve the accounts or sponsors would not fund the Paralympic games,” Chandra added.