According to a report in The Sun today, it comes in the midst of allegations that the association has been delaying salary payments to its staff.
The report said AAM had already collected 10 per cent of the selling price of RM7.5 million in May, and had called for a special general meeting (SGM) for members on October 3, to pass a resolution authorising the trustees and/or the association to execute processes to fulfill its obligations under the sale-and-purchase agreement.
This has riled up members of AAM, who are accusing the organisation of treating the SGM as a mere “rubber stamp”, to ratify a deal that has already been signed.
This, they say, could also get AAM in trouble, because if the meeting fails to endorse the proposed sale, the association may not have sufficient funds to repay the deposit, according to the report.
The said property has been reportedly sold to WWRC Holdings Sdn Bhd, a chemical solutions company with Singaporean and Taiwanese directors.
There are also claims that the building has been sold at below market price. The report cited two other previous offers, which were put at RM8.6 million and RM7.7 million respectively, but the AAM committee had in its minutes of a meeting noted that the RM7.5 million offer was the “best offer”.
According to The Sun report, the financial position of AAM has dipped over the last few years, including its list of assets and fixed deposits.
Some insiders say this could be attributed to expensive renovations, high cost of salaries, and first class air travel and hefty allowances paid to officials, according to the report.
AAM, the country’s premier motoring authority, has been in the news in the past few months for defaulting on salary payments to its staff.
Apart from the cries from its staff, the body is also facing demands of refunds of annual fees from its members.