The Islamic Economic Development Foundation (Yapeim) has refuted allegations that RM1 million in funds meant for orphans were misused to pay a lawyer's legal fees in 2017.
"The (report) that RM1 million from the funds was misused is not true and is slander," Yapeim legal and regulatory department chief Adawiyah Abdul Samad said at a press conference today.
"The legal fees were not taken from the trust or orphanage funds as claimed. Yapeim has two funds – general (am) and charity (amal jariah).
"The money used to settle the legal fees came from the general fund, and the amount is not RM1 million. It's much less than that."
Adawiyah declined to disclose how much was actually paid to the lawyer, however.
The Malaysian Insight reported yesterday that money entrusted to the foundation was purportedly channelled to settle the legal fees of the lawyer, who was a former adviser to former premier Najib Abdul Razak and an ex-director of Yapeim.
Five Yapeim officers, including Adawiyah, were present at today's press conference at its office in Kuala Lumpur, on behalf of director-general Abibullah Samsudin.
'Nothing to do with Najib'
Adawiyah said the use of the money from the general fund – also used to pay staff salaries and bonuses – was approved by the board of trustees.
"The general fund is from the profits generated from businesses such as Ar-Rahnu and properties. Yapeim has 213 Ar-Rahnu branches nationwide."
Adawiyah also stressed that the issue has nothing to do with Najib.
On his Facebook page yesterday, the former premier reacted to his photograph and name being used in relation to the alleged misappropriation, calling it "evil propaganda" aimed at tarnishing his reputation on the polling day of the Sandakan by-election.
In 2017, the founding members of Pemangkin (Foundation for the Advancement of Orphans and the Poor) filed a suit against Yapeim, but it was struck out by the Kuala Lumpur High Court.
They claimed that Yapeim used Pemangkin's funds to sponsor irregular programmes by former minister in the Prime Minister's Department Jamil Khir Baharom to Europe, the United States and for Yapeim's programmes in Australia.
A year earlier, according to Adawiyah, Yapeim filed a Mareva injunction against Pemangkin after the latter exited the foundation with funds totalling RM2.2 million.
A Mareva injunction is a temporary injunction that freezes the assets of a party pending further order or final resolution by the court.
It is learnt that the new board of trustees, appointed in April this year, had decided to settle the case with Pemangkin out of court. - Mkini
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