A MACC report was lodged by the DAP in Penang today against the Socio-Economic Development Programme for the Indian Community (Sedic) agency over the alleged misuse of its funds by certain political party leaders.
Bagan Dalam assemblyperson Satees Muniandy, who lodged the report, said while MIC Youth was the first to lodge a report, their complaint was general in nature and did not specify the culprits mentioned in the auditor-general’s report for 2018.
Satees said the auditor-general's report, tabled in the Dewan Negara last week, specifically mentioned the alleged culprit's role in approving Sedic funds for two particular NGOs.
In 2016, RM2.55 million was allocated to one Yayasan Kemajuan Insan Malaysia, and in 2017, the same NGO received RM2.67 million, the report stated.
"We urge the MACC to probe the matter thoroughly and bring the culprits to book," said Satees.
"Any NGO that intended to apply for funds from Sedic must follow certain procedures and the approval for such funds will go through a certain selection process," Satees told reporters before lodging the report.
"But the auditor-general's report revealed that this particular NGO had only sent a request letter to a cabinet minister and then got the funds," he added.
"According to the auditor-general's report, the funds allocated to this NGO was also channelled to a political party to buy assets and to pay for the emoluments of the political party’s staff members," he said.
Minister in Prime Minister’s Department P Waythamoorthy had said on April 16 that following the preliminary findings of the audit, Putrajaya would be scrutinising NGOs' applications for funding more closely to prevent a recurrence.
Launched in 2014 by the previous BN government, the latest auditor-general's report outlines alleged massive financial irregularities in Sedic funds.
Among them were that funds for NGOs linked to certain ministers and deputy ministers were allegedly approved without proper procedures.
Details of how the funds were abused to purchase assets and pay for the salaries of political party staff members were also included in the auditor-general's report.
In December last year, Sedic has been rebranded as The Malaysian Indian Transformation Unit (Mitra).
On April 16, Mitra director-general S Letchumanan said that Sedic grants had been disbursed to some 800 NGOs.
The AG's report also stated that a substantial amount of Sedic funds were also found to have been channelled to an NGO named "Special Implementation Task Force" (SITF) which handled the political activities of MIC candidates during GE14.
"This is the highest form of misuse of funds where it is alleged that a cabinet minister was directly involved in the misappropriation of money from Sedic," Satees said.
"This particular NGO opened an office in every constituency which MIC candidates contested in GE14, including one in my constituency of Bagan Dalam," noted Satees.
"The offices were used as BN operations centres during the last elections.
"But only now we know that the funds used for these political activities were intended for the socio-economic development of the Indian community," he said. - Mkini
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