Khalid’s aides must return RM2.6 million golden handshake, says Azmin

Selangor Menteri Besar Mohammed Azmin Ali (left) and the Sultan of Selangor at the state-level Maulidur Rasul celebrations at Stadium Malawati in Shah Alam today. Azmin says his predecessor’s compensation to eight staff members was irregular. – The Malaysian Insider pic by Seth Akmal, January 3, 2015.

Eight aides of Tan Sri Abdul Khalid Ibrahim will be asked to return the RM2.6 million "golden handshake" they received last November from the former Selangor menteri besar in his last days in office.

Selangor Menteri Besar Mohammed Azmin Ali said a notice would be issued by Selangor Menteri Besar Incorporated (MBI) after an investigation found violations in terms of procedures and financial regulations when the payment was made to the eight.

"The new MBI management has informed me after getting legal advice, a letter will be sent to all of them to return the money," he said after attending the state-level Maulidur Rasul celebrations at Stadium Malawati in Shah Alam today.

It was reported that RM2.27 million in compensation and RM376,000 in lieu of three months' notice were allegedly paid to Khalid's eight members of staff.

In a document sighted by The Malaysian Insider, the highest amount of RM695,400 was allegedly paid to Faekah Husin, former CEO of state-owned MBI.

Azmin had previously said there were elements of wrongdoing in the matter and that MBI would discuss the next steps to be taken.

However, Khalid was reported as saying the payments were made under a voluntary separation scheme (VSS) offered to the eight when he left office.

Brushing aside concerns over the amounts, Khalid said the VSS payout made up less than 2% of MBI's RM112 million cash reserves.

Today Azmin said MBI would review the former aides' new severance payments following the return of the money.

"This is the decision of MBI's new management but they will continue to be paid according to current allocation.

"Like I said earlier, the earlier severance package involving such a huge amount has clearly gone against the current procedures and financial procedures, as well as against the terms of the contract, so the money has to be returned," he said.

He said the state government would give the eight time to study the notice but warned that MBI would not hesitate to take follow-up action if they contravened the directive.

However, he did not elaborate on what action would be taken if they did not return the payments.

An 11-page state treasury investigation on the golden handshake found
that the RM2.6 million payments had not been done according to procedure.

The report, distributed at the state assembly sitting early last month, said that the compensation to Khalid's eight members of staff, who also quit when he stepped down three months ago, were in violation of the terms and conditions of their employment letters.

It further revealed that the calculation of payments made were also inaccurate.

PKR sacked Khalid in August after he failed to attend a disciplinary committee hearing over allegations concerning the Selangor water-restructuring exercise, his debt settlement with Bank Islam and the proposed Kinrara-Damansara Expressway (Kidex).

These came amid a tussle for the Selangor MB's position that started early last year, with the PKR leadership wanting him to step down to make way for party president Datuk Seri Dr Wan Azizah Wan Ismail.

The crisis ended when the sultan of Selangor appointed PKR deputy president Azmin as the new menteri besar in September.

- TMI