Why money not kept in bank earning interest, Umno asked

Aliran questions if Umno's constitution allows the president to keep huge amounts of cash belonging to the party.

Police transferring boxes containing cash during raids at a property linked to Najib last May. (AFP pic)

PETALING JAYA: Penang-based pressure group Aliran has questioned Umno over the huge amounts of money kept in hard cash, including the millions of ringgit seized from former leader Najib Razak, which he said belonged to the party.

Aliran’s P Ramakrishnan questioned why the huge amount of money was not deposited in banks instead.

“Doesn’t Umno have faith in our banks for the money to be safely kept in the bank earning interest? What is the responsibility of the treasurer? Does he play any role at all?” he asked in a statement.

It comes amid reports that some RM3.5 million had been removed from the Prime Minister’s Office in Putrajaya on the night of May 9, following Umno’s defeat in the general election.

Najib had said the money was to be used for Umno’s election campaign, and was being kept outside the strong room and safes in his office.

Najib said the RM114 million cash seized by police in several raids at properties linked to his family members was also party funds.

But Aliran questioned if the Umno constitution allowed the president to keep party funds in that manner.

“What is the role of the treasurer then?” it asked. “Normally, the money of a society is managed by the treasurer. In Umno’s case, we rarely hear of the treasurer.”

It added that as required by law, party funds should be kept in a bank and operated by chosen officials.

“Payment can only be made for any big expenditure incurred following a decision of the Umno Supreme Council.

“No party constitution gives absolute authority or discretion to the party president to use so much money as to when and how without being accountable,” said Ramakrishnan.

“Don’t the Umno members query this practice?” he asked. -FMT