A-G’s Report: MPN misused funds, exhibited unsatisfactory corporate governance
Bernama
July 4, 2024 19:45 MYT
July 4, 2024 19:45 MYT
According to the LKAN, two members the National Council of Professors (MPN) Board of Trustees failed to declare their shareholdings in two private companies. - Astro AWANI
KUALA LUMPUR: The Auditor General's Report (LKAN) 2/2024 revealed that the National Council of Professors (MPN) misused its financial resources and exhibited unsatisfactory corporate governance practices.
According to the LKAN, the MPN was not properly managed as per its Articles of Association and Act 777, and two members of its Board of Trustees failed to declare their shareholdings in two private companies.
"MPN was found to have financed the operations of two private companies amounting to RM373,516, creating a conflict of interest. MPN also did not comply with its Articles of Association regarding appointment procedures and the payment of fixed allowances.
"MPN made fixed allowance payments totaling RM207,000 to the Chairman and Deputy Chairman without the approval of the relevant minister," stated the report presented in Parliament today.
Among the unauthorised payments made were RM399,000 in honorariums to research fellows, RM82,500 for the installation of a lift and office renovations, RM62,500 for the adjustment of senior management salaries, and RM66,000 in fixed allowances to the president/chief executive officer.
The management of MPN grants was deemed inefficient, with delayed grant recognition amounting to RM2.43 million lacking supporting documents, and RM0.92 million spent contrary to the grant's approved purposes.
The report highlighted that RM475,000 of the allocation was not utilised, while RM98,076 in corporate credit card payments, and RM20,000 in advances were made without supporting documents.
Therefore, the AG's Report recommended that the Prime Minister's Department review MPN's status as a government-supervised entity and determine its standing before deciding whether to continue providing grant allocations.
"If MPN remains a government-supervised entity, it should amend its Articles of Association to include government representatives on the Board of Trustees to monitor its operations and finances.
"Additionally, the Prime Minister's Department should take appropriate action against MPN's management for identified irregularities by referring the matter to relevant enforcement agencies, and MPN's management needs to be comprehensively overhauled," the report stated.
-- BERNAMA