The 2024 auditor-general’s (A-G) report, released today, also recommended that JPM refer the irregularities to the relevant enforcement agencies.
The irregularities include the discovery that two MPN trustees misused RM373,516 of the council’s funds to finance the operations of two companies in which they hold shares.
The report also highlighted a conflict of interest as the trustee members failed to declare their interests as shareholders in the two companies in accordance with the Companies Act 2016.
The report said that based on interviews with MPN officials, the two companies had been operating rent-free out of MPN’s office since 2019.
It also found that the council’s chairman and deputy chairman were paid RM207,000 in allowances without ministerial approval.
Other issues raised in the report included corporate credit card payments totalling RM98,076 and advance payments of RM20,000 made without supporting documents.
The A-G’s report also revealed an inefficient management of grants at MPN, including the delay of RM2.43 million in grants, expenditure of RM920,000 in grants on purposes that were not approved, and failure to utilise RM475,000 in allocations.
Certain payments were also made without approval from MPN’s board of trustees.
This includes research fellow “honorarium” payments totalling RM399,000, elevator installation and office modifications worth RM82,500, and fixed allowances for the president and CEO totalling RM66,000.
The report said that the MPN office was modified to seat staff from one of the two companies linked to the trustees.
The report, which also said that MPN had not been audited by the national audit department since its formation in 2014, recommended that JPM review MPN’s status as a government-supervised company, which it said should be finalised before the council is granted more allocations.
The report said MPN received government grants totalling RM28.06 million from 2015 to 2018, RM3.38 million in 2022 and RM4.4 million in 2023.
“If MPN remains under the government’s supervision, MPN’s constitution should be amended to include government representatives on its board of trustees to oversee MPN’s operations and finances,” said the report.