THE high bonuses paid to the senior management of the Malaysian Islamic Economic Development Foundation (YaPEIM) was based on its existing scheme, the organisation said.

YaPEIM Legal Department head Adawiah Abdul Samad said the money used to pay for the bonuses did not come from donated funds or from trustees.

“In YaPEIM, there is a scheme for each staff. This scheme is based on our policy and existing service scheme. If the bonus is high, it is based on this scheme,” Adawiah said, adding that all bonuses had to be approved by the board of trustees.

“This process also had to come from the board of trustees. If the board approves it, only then will we disburse the funds.”

However, Adawiah did not deny that the institution’s management and senior officers received large bonuses.

The Malaysian Insight reported yesterday that directors received bonuses of RM400,000, senior officers RM250,000, the director-general RM100,000 and others in senior positions RM35,000.

“The director-general and directors of YaPEIM received high salaries and allowances. On top of that, they also received allowances from subsidiaries to which they appointed themselves as directors.

“Each subsidiary paid them allowances of between RM1,500 to RM4,500. YaPEIM has 10 active subsidiaries, which paid out these allowances,” the report read.

The report also said YaPEIM was undergoing a structural and functional overhaul to resolve alleged leakages and misappropriation of funds.

It said the practice of dishing out high bonuses had affected YaPEIM’s financial performance.

Those who benefited from the large bonuses were in management positions in various departments at the foundation, such as human resources, administration, finance and the director-general’s office.

YaPEIM falls under government oversight through a minister in the Prime Minister’s Department, normally in charge of Islamic affairs. It is managed by its president, deputy president and a board of trustees, whose members are appointed by the minister.

It does not receive government funds but accepts donations and participates in various economic activities, including running supermarkets, gold trading and in the real estate sector, with part of the profits used to fund welfare programmes.

Allegations of financial misappropriation were first revealed by the PKR-linked National Oversight and Whistleblowers (NOW), whose director, Akmal Nasir, is now Johor Baru MP.

Akmal released a series of exposes in late 2015 on various claims of abuse of power and inappropriate spending by YaPEIM’s top management.

In December the same year, then YaPEIM president Awang Malek Awang Kechil and deputy president Siti Zaleha Hussin resigned from their positions.

Among questionable investments noted in the restructuring report was an allegation that YaPEIM purchased a building in Putrajaya by taking out a loan from Bank Islam that was higher than the value of the property.

Against the advice of its risk and investments committee, it also bought a 60% share in the Aneka Supermarket network at RM10 million. The committee had considered Aneka a high-risk venture with losses and did not approve the investment.

The report also said YaPEIM channelled RM40 million in grants and loans to one of its wholly owned subsidiaries between 2012 and 2014 without any details on what the funds would be used for.

“The board of trustees has expressed dissatisfaction with the chairman and wants detailed disclosure on how the grants and loans were used,” the restructuring report stated.

“From initial investigations, it was found that a lot of money was used by management on overseas trips and to pay for unauthorised expenses incurred on these trips.” – May 12, 2019.