RM40 million spent on football


Khalid also said his administration was informed that the MACC is currently investigating allegations that funds meant for the PKNS football club (FC) was misused. Three state executive council members will be tasked with monitoring funds meant for the PKNS football team amounting to RM9 million per year.


Raja Petra Kamarudin

Since Pakatan Rakyat took over the Selangor State Government in 2008, the Selangor State Economic Development Corporation or SEDC (PKNS) — the state agency currently facing controversy regarding the ‘sacking’ of Azmin Ali from the Board of Directors and the non-renewal of the employment contracts of 22 staff members — has spent RM40 million on football.

Actually, just to digress a bit, Azmin Ali was not sacked. Board Members serve for a certain term and retire at the end of their term and then offer themselves for reappointment. If they indicate that they do not wish to continue another term then they are not reappointed to the Board. That is how it usually works.

So, when the Board met, it did not renew Azmin’s term. The PKNS General Manager then wrote Azmin a letter telling the latter that he had been sacked, which is not true at all, because, if he was not reappointed a Board Member, and hence is no longer a Board Member, how can they sack him?

According to PKNS, Azmin was the one who asked for that letter to be sent and, of course, the man who collaborated with Azmin in creating this drama of his sacking was himself sacked together with his very expensive ‘assistant’. Now you know why Azmin’s people protested when action was taken against his collaborators.

The same for the 22 staff whose contracts were not renewed. But we will talk about that matter later in another episode. Today we want to talk about the RM40 million that PKNS has spent to finance the PKNS Football Club (http://pknsfc.com/) since Pakatan Rakyat took over the State Government.

The RM40 million was the total spent over about six years. Initially, just before Pakatan Rakyat took over in 2008, it was less than RM2.5 million per year. Then it started to increase and over the last three years it has shot up to as high as RM10 million a year today.

The money to finance the PKNS FC comes from two subsidiaries, SIC and Selaman. The problem that PKNS is now facing is that the accounts are in a mess and no one can figure out how the money was spent or what has happened to it. Most of the expenditure is not supported by documentary evidence.

The people involved in the PKNS FC are as follows:

1. Three Senior accountants of PKNS (salaried and full-fledged PKNS staff)

i. Azhar Ahmad.

ii. Nor Hisham Ghouth.

iii. Tuan Hj Ishak Bakri  – Juruodit PKNS FC.

2. Sports manager – Raja Mohamad Raja Harun.

3. Sales Manager Shah Alam PKNS – (Azmi Adnan).

4. Land Manager Shah Alam PKNS – (Mahfizul Rashid).

5. Security Manager PKNS – (Roslan Sekin).

6. Clerk from finance department (he has since left PKNS after the fraud issues emerged) – Farid Buniran.

7. Hamzah Jaafar.

8. Suhaimi Hamid.

All these people, who cost the taxpayers about RM200,000 a year in salaries, are paid by PKNS, on top of the allowances they receive to ‘manage’ the PKNS FC. They are, of course, aware of the mismanagement of PKNS FC’s funds but no one wants to be the whistleblower, for obvious reasons — they are being well paid to ‘toe the party line’.

I suppose Pakatan Rakyat is very particular about ‘toeing the party line’. Hence these people are doing just that while enjoying millions in salaries and allowances over the last six years and while the PKNS FC bleeds another RM40 million.


Selangor forms task force to monitor usage of PKNS funds

(The Malay Mail, 12 Feb 2014) – The Selangor government has announced the formation of a special task force to monitor how the Selangor State Development Corporation (PKNS) is using its funds.

Selangor Mentri Besar Tan Sri Khalid Ibrahim said the move is necessary as there are issues concerning the usage and expenditure of funds belonging to PKNS, which “needs to be improved.”

Khalid also said his administration was informed that the Malaysian Anti-Corruption Commission (MACC) is currently investigating allegations that funds meant for the PKNS football club (FC) was misused.

“There are some issues which needs to be resolved. I have appointed Iskandar Samad, Datuk Teng Chang Khim and Rodziah Ismail to monitor the expenditure of PKNS funds,” he told reporters at a news conference here.

The three state executive council members will be tasked with monitoring funds meant for the PKNS football team (RM9 million per year), entrepreneurial development (RM5 million per year) as well as corporate social responsibility (CSR) amounting to RM30 million each year.

PKNS was thrust into the public eye after the recent termination of 22 PKNS Holdings Sdn Bhd (PHSB) staff and the sacking of its former general manager Datuk Othman Omar and executive secretary Norita Mohd Sidek.

Othman and Norita were relieved of their duties last month over the removal of Selangor PKR chief Azmin Ali from PKNS’ board of directors.

Khalid has maintained the job cull at PHSB was due of revelations made by whistle-blowers as well as part of a restructuring exercise to cut costs at the state-owned body.

The Selangor MB claimed that PKNS has saved almost RM7 million a year from the restructuring exercise.

The Port Klang assemblyman explained that the termination was in line with the integrity pact signed between PKNS and Transparency-International Malaysia.

Under the pact, whistle-blowers had lodged complaints that permanent staff were blocked from promotion to higher posts which were occupied by PHSB employees.

New posts and departments paying high wages were allegedly created to be filled by PHSB employees, said Khalid of the complaints.

There were also complaints that PHSB employees were appointed by recommendations, bypassing proper hiring procedures, said Khalid.

The Selangor MB has also stated he will not apologise or retract the dismissal letters of 22 PKNS Holdings Sdn Bhd contract staff.