NO money set aside for orphans was used to settle the legal fees of one of Najib Razak’s aides, the Malaysian Islamic Economic Development Foundation (YaPEIM) said.

The legal fees, which was earlier reported to be close to RM1 million, was instead paid from YaPEIM’s general account, said the foundation’s legal officer Adawiah Abdul Samad, who added that even the sum mentioned was not correct.

“We deny the accusation. YaPEIM had never used the money meant for orphans to pay for Najib’s aide who was a former director here.

“Furthermore, the legal fee did not even reach RM1 million, it was not even half a million.

“The payment came from the general account which was sanctioned by YaPEIM’s board of trustees,” the legal officer said after a closed-door meeting of YaPEIM’s top management this morning.

Adawiah, however, did not disclose the actual amount YaPEIM paid for the legal fees.

The Malaysian Insight reported yesterday that funds totaling RM1 million from YaPEIM to provide aid for orphans were misappropriated to pay legal fees for one of Najib’s aides.

The report was published after The Malaysian Insight had sighted confidential government documents on the alleged misappropriation of funds at the Islamic institution.

According to discussion notes on the financial expenditure of YaPEIM, the money was channeled to settle legal fees to the aide, who was an adviser 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 for 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 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.

Adawiah said the lawyer hired by YaPEIM to handle the case was approved by the board of trustees, adding the lawyer was appointed in 2016 on a three-year contract.

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

Akmal, who is also Johor Baru MP, said 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 then Minister in the Prime Minister’s Department Jamil Khir Baharom 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 revamping and restructuring of its roles to increase transparency within the organisation.

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 12, 2019.