RM1 million for orphans used to pay legal fees for Najib’s aide

The Malaysian Insight The Malaysian Insight Updated 4 years ago · Published on 11 May 2019 7:00AM · 13 Comments

Confidential documents sighted by The Malaysian Insight show that RM1 million from the Malaysian Islamic Economic Development Foundation have been used to pay legal fees for an aide of former prime minister Najib Razak. – The Malaysian Insight pic by Najjua Zulkefli, May 11, 2019.

FUNDS totaling RM1 million from an Islamic foundation set up to provide aid for orphans were misappropriated to pay the legal fees for one of Najib Razak’s aides, according to confidential government documents sighted by The Malaysian Insight.

According to discussion notes on the financial expenditure of the Malaysian Islamic Economic Development Foundation (YaPEIM), the money was channeled to settle legal fees to the aide, who was an advisor to former prime minister Najib, as well as a director for YaPEIM in 2017.

The case involved a suit by founders for the Foundation for the Advancement of Orphans and the Poor (Pemangkin), who charged that YaPEIM had used its funds to sponsor former minister in the prime minister’s department Jamil Khir Baharom to trips to Europe, the United States and Australia.

The suit, which was filed by Pemangkin founders Mohd Yusoff A Bakar and Ahmad Fazil Hashim, in March 2017 also alleged that the aide had intended to shut down the foundation, which was placed under the YaPEIM in order to bury the scandal.

In the documents, the aide was found to have made payments exceeding RM1 million in several tranches to two different law firms, in small amounts each time.

“The legal fees did not get the approval from the YaPEIM board of directors; in fact, the payments made to the lawyers did not exceed RM50,000 (each time) to avoid having to get the approval of the board of directors.

“The lawyer’s fees have reached RM1 million,” said the document.

The report claimed that YaPEIM made three payments of RM50,000 each to the lawyer’s firm, on January 10, March 17 and  April 9 of the same year.

The foundation also paid RM35,000 to Ash Hiani Group Sdn Bhd as the cost of negotiating the case management involving Yapeim and Pemangkin on April 12, 2017.

On May 12, another two transactions – RM 37,477 and RM 36,452 – were made to settle the remainder of the legal fees for the case.

The aide was a member of YaPEIM’s board of trustees from 2017-2018 and a former director for the strategic planning department of the Prime Minister’s Department.

Apart from the aide, Pemangkin also sued Jamil Khir and five other board of directors of Yapeim.

They are Mohd Yusof Abd Rahman, Mokhtar Abdul Razak, Abibullah Samsudin, Sharina Ramli and Normala Embi, who had all sought to challenge the suit.

Jamil Khir, who was named as the first defendant, has not sought to challenge the suit.

On February 7 last year, the Kuala Lumpur High Court struck out Pemangkin’s suit on the basis that it was frivolous, vexatious and an abuse of the court process.

However, in November 2018, the Court of Appeal overturned the high court decision by declaring that the case had merit and would be returned to the high court for a full trial.

The YaPEIM scandal was initially raised in 2015 by director of the National Oversight and Whistleblowers (NOW) Akmal Nasir.

The Johor Baru MP said that Yapeim had spent RM223,000 for the Rompin parliamentary by-election.

On November 13, 2015, Akmal also alleged that Yapeim funds totalling RM411,000 meant for charity work was misappropriated by Jamil Khir to pay for his travels, golfing activities and visits to shopping malls.

A day later, Akmal corrected his earlier alleged amount, saying that the amount spent was actually RM590,000.

He also said YaPEIM had spent RM290,000 to organise a marriage course in Paris which was officiated by Jamil Khir.

The report sighted by The Malaysian Insight also revealed that YaPEIM is in the midst of a revamp and restructuring of its roles to increase transparency within the organisation.

The Malaysian Insight has sought a response from YaPEIM on the findings of the confidential document and is awaiting a reply from it.

“YaPEIM is improving its policies and methods of decision-making, for example the management can now only use 20% of all charity donations to fund the cost of managing YaPEIM.

“The rest must be spent on charity and investments,” said the report.

Yapeim was created in 1976 under the Trustees (Incorporation) Act and is similar to a charity trust fund.

However, YaPEIM is not an ordinary charity trust fund as it is supported by the government with the prime minister as its patron, who delegates a minister in the Prime Minister’s Department, normally in charge of Islamic affairs, to oversee the organisation.

YaPEIM is managed by its president, deputy president and a board of trustees whose members are appointed by the minister.

It participates in various economic activities including running supermarkets, gold trading and in real estate with part of the profits used to fund welfare programmes. – May 11, 2019.

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Comments

  • Pencuri juga

    Posted 4 years ago by SY L · Reply

  • Perhaps the lawyers are also orphans?

    Posted 4 years ago by Yoon Kok · Reply

  • Islam foundation money also curi. Defender of islamic religion? More like a destroyer of Islam.

    Posted 4 years ago by James Wong · Reply

  • this rascal are so sick. even orphanage fund aslo they wallop. hope and pray they and their entire family burn in hell

    Posted 4 years ago by . . · Reply

  • Worse than Ali Baba and the 40 Thieves. Even the poor, destitute and religious money is not spared from their thieving ways.

    Posted 4 years ago by Robert Phang · Reply

  • He stole from the poor and the defenceless, and used the loot to line his private bank accounts, by luxury yachts, luxury apartments and bungalows around the world, and has been an interested party in several murders. Yet he dares to show his face and throw his stolen money in the faces of the very people he has stolen from. This must be a new definition for the word 'shameless'.

    Posted 4 years ago by Arul Inthirarajah · Reply

  • Govt of the Day Pls if possible DONT USE NON MUSLIM MONEY TO BAIL OUT YOUR MUSLIM ORGANISATION AS WE ARE SICK N TIRED OF HELPING U CULPRITS. Non Muslim hv to help themselves also with our own hard earn money.

    Posted 4 years ago by Mindy Singh · Reply

  • No Any Muslim Organisation Helps to Bail Out the Non Muslims. U STEAL U PAY WHY SHOULD I PAY.

    Posted 4 years ago by Mindy Singh · Reply

  • This is a huge sin that cannot be forgiven except by Allah.. This is terrible.. to take away food on the table meant for orphans and to spend the money on pleasure-seeking ventures..

    Posted 4 years ago by Kampung Boy · Reply

  • I don't want to say this, but Najib, going to hell is too kind for a punishment.

    Posted 4 years ago by Z Azmyl · Reply

  • Unbelievable and shocking that the thieves even lay their dirty hands on money meant for ophans. Please front page this in all local newspapers for 7 days and hopefully all stupid and the not stupid but misled people now know that the circles of "Apamalu bossku" and the boss are all black hearted hantus.

    Posted 4 years ago by Concerned Citizen · Reply

  • these people are lost.....forever

    Posted 4 years ago by Lan Lan · Reply

  • When the head of an organisation is sleeping at his desk and a crook, you can just imaging how the rest of his managers acts would be, thief and they are corrupted to the core.

    Posted 4 years ago by Teruna Kelana · Reply