RM900,000m wasted on frivolous events

A Yayasan Selangor insider wants the state's Select Committee on Competency, Accountability and Transparency (Selcat) to probe general manager Ilham Marzuki.

SHAH ALAM: State education arm, Yayasan Selangor, is sinking deeper into controversy with the latest disclosure that its supplier-companies were allegedly newcomers registered in 2009, right after Pakatan Rakyat came into power.

According to an inside source, Yayasan Selangor, which now “operates like a private company”, is being hounded by cronies with an eye only for money-making opportunities.

The insider, who is a Pakatan leader, said that last year the foundation spent RM900,000 on “frivolous” activities contracted out to these crony companies.

He said there was something “fishy” about the companies appointed by Yayasan Selangor.

“There is so much secrecy in Yayasan Selangor… It is time the state government explained the status of Yayasan Selangor and reveal information about the crony companies,” the insider said.

He also urged the state’s Select Committee on Competency, Accountability and Transparency (Selcat) to investigate Yayasan Selangor and its general manager, Ilham Marzuki, who survived a probe into a RM400,000 expense incurred in relation to a luncheon to celebrate the foundation’s 40th anniversary celebrations.

Formed by former Menteri Besar Harun Idris in 1970 under the Companies Act 1965, as a company limited by guarantee, the foundation was supposed to look into and fulfil the educational needs of Selangor citizens.

In the past, with the support and guidance of the Selangor government, the foundation had built several student hostels and established two universities for its citizens.

It also moved into property development aimed at generating income to meet the target of providing scholarship and loans to Selangor applicants, especially among its rural community.

But lately the Yayasan’s mission appears to have changed, said the insider.

“Since Pakatan came into power, the foundation has organised many programmes which have profited its cronies.

“Last year alone, it spent RM900,000 on frivolous events, not related to scholarships, loans or education,” the source said.

Frivolous expenses

Detailing the “frivolous” expenses, the sources said that on Aug 21, last year, the foundation held held a “buka puasa” ceremony costing RM167,400.

“It was a simple, straightforward event which the Yayasan staff could have handled themselves, but instead they awarded the function to Rahah Enterprise, a private company involved in multilevel marketing, among other activities.

“In the first place, there is no need for a RM167,400 buka puasa function and secondly, why outsource it to a private company?

“Who is this Rahah Enterprise? And why did the foundation agree on such an inflated cost? I am sure there would have been other companies willing to manage the event at a lesser cost,” he said.

Citing another event, the source said on Oct 10, Yayasan Selangor had organised a “luxury Hari Raya open house” for RM380,000.

Much like its Aug 21 event, the foundation outsourced the event to two companies – SDF Media and Event Sdn Bhd and T.L. Tinalta.

SDF was in charge of the overall event while Tinalta would provide supplementary services for the function.

Interestingly enough, a check by FMT at the Registrar of Companies showed that only two – Nordin Markin and Muzaidi Amri Mohamad – of SDF’s five directors had addresses in Selangor. The others – Azhari Ghazali, Anuar Ahmad and Norazlia Saidin – were from Johor, Perak and Pahang respectively.

There was no information available on Tinalta.

Royal lashing

Yet another event which courted controversy was the Yayasan’s 40th anniversary celebration last year.

Described as an “unnecessary waste of funds”, the event received a royal lashing from the Sultan of Selangor, who refused to grace the function.

“The cost of the luncheon was nearly RM400,000 and the contract was awarded to Drift Z Enterprise. The owner’s name is Syed Abdul Muiz Syed Zulkifli.

“Drift Z Enterprise was paid RM375,000 as initial payment for the event. When the event was cancelled, the money was considered burnt,” the insider said.

Strangely enough all three companies – Rahah Enterprise, SDF and Tinalta – were registered in November and December 2009, right after Pakatan came into power.

Meanwhile, a Yayasan Selangor official, when contacted, denied the allegations but pledged to get back to FMT with an official statement on the matter.