The Auditor-General’s Report has disclosed that two Board of Trustees members at the National Council of Professors (MPN) misappropriated funds amounting to RM373,516 to support the operations of two private companies. These members, who are the chairman and deputy chairman of MPN, also held shareholder positions in these companies and did not disclose their interests, thereby breaching Act 777.
The report highlights the conflict of interest arising from the General Secretary/President/Chief Executive Officer (KPE) of MPN owning shares in both companies and the Chairman’s position on the Board of Directors of these entities. Furthermore, the two officials received allowances totaling RM207,000 without proper authorization.
An audit of payment vouchers revealed that from March 2022 to January 2024, the Chairman and Deputy Chairman received monthly allowances of RM5,000 and RM4,000 respectively, without the necessary ministerial approval. Over this period, the Chairman accrued RM115,000, while the Deputy Chairman received RM92,000.
Several unauthorized financial transactions were also uncovered. On January 16, 2023, MPN signed an Operational Financing Agreement with Company I, agreeing to advance funds for operational purposes to be repaid by December 31, 2023. This agreement, however, was not disclosed to the Board of Trustees. An advance of RM71,000 for an international student recruitment program was issued in the name of Company I’s CEO instead of the company itself. By February 29, 2024, Company I had not repaid the advance received.
Additional unauthorized payments included an honorarium of RM399,000 for a research fellow and RM82,500 for elevator installation and office renovation. The report also cited issues with grant management, such as delayed recognition of grants totaling RM2.43 million as revenue, and corporate credit card expenditures amounting to RM98,076, with RM20,000 in advances lacking supporting documents.
Furthermore, RM0.92 million was spent on purposes not approved under the grant, and RM475,000 of allocated funds remained unutilized. The unused funds were intended for publications (RM100,000), fund channelling to clusters (RM135,000), chapters (RM210,000), and special programs (RM30,000).
The report emphasized the absence of an internal audit function within MPN, which contravenes MCCG 2-21 practice 11.1. Internal audits are vital for advising the Audit Committee (JKA) on internal process weaknesses and implementing corrective measures.
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