Yapeim admits 'wrongdoing, negligence' by previous management

The Islamic Economic Development Foundation (Yapeim) today acknowledged the possibility of wrongdoing and negligence by its previous management.

Mohd Daud Bakar, who chairs Yapeim's new board of trustees, said that this was found in an internal probe and an external audit conducted by PricewaterhouseCoopers (PwC) Malaysia.

"This is based on a report by PwC, as well as findings from the trustee board itself, which has been in constant interaction with the foundation's management since November last year.

"The board has identified several possible wrongdoings and negligence by Yapeim's management over the past few years," he told reporters at a press conference at the foundation's office in Kuala Lumpur.

For the record, PwC has also conducted audits on Tabung Haji and 1MDB.

Mohd Daud admitted that he was concerned by the audit findings, but at the same time, said he was happy the matter was solved in a professional manner. 

"This is important to kickstart Yapeim's rehabilitation towards being managed in a more substainable way, and with more integrity," he said. 

According to Mohd Daud, among the issues Yapeim's management have scrutinised are the high bonuses previously enjoyed by its top management, payment to the foundation's lawyers, as well as losses in a gold pawn scheme.

"Everyone involved in wrongdoing, and causing leakages in Yapeim, will be held responsible, according to the foundation's internal rules, and the Malaysian law," he said, adding that a press conference will be held next Tuesday to answer various issues put forward by the media, regarding Yapeim.

Last August, de facto Islamic Affairs Minister Mujahid Yusof Rawa said that Yapeim was one of the agencies on his radar and that he would weed out any misappropriation of funds.

Recently, The Malaysian Insight reported that RM1 million in aid for orphans entrusted to Yapeim was allegedly misused in 2017 to settle the legal fees of a lawyer, who was also an aide to then-prime minister Najib Abdul Razak.

However, the foundation later brushed off the allegations, saying the legal fees were much lower than the reported RM1 million, and were taken from its general (am) fund, and not its charity (amal jariah) fund.

The foundation is also reported to have suffered losses amounting to RM12 millionthrough a gold pawn scheme involving 1,000 customers of its business wing Ar-Rahnu. - Mkini