Group queries education fund's 'missing' interest payments
A Chinese graduates group wants to know why the accounts of the Chang Ming Thien Foundation in 1998/99 remained the same over the past nine years.
The fund, amounting to about RM13.2 million, which was recorded in the 1998/99 annual report of Multi-Purpose Holding Bhd (MPHB), is "questionable and irrational", the Kuala Lumpur and Selangor Youth Graduates Society chairman Chew Chong Sin said in a statement to malaysiakini today.
According to a Nanyang Siang Pao report last Friday, the MPHB annual report showed the sum of RM13.2 million, comprising a principal sum of RM10 million and interest of RM3.2 million.
This represents the balance out of a total amount of RM17.6 million payable to the foundation after the company effected a partial payment of RM4.4 million in 1990.
The report said that "the company had withheld payment to the foundation of the principal amount of RM10 million, pending the outcome of Kuala Lumpur High Court Suit No S1-22-564-91 filed in 1991 by the donor, General Holdings Sdn Bhd, seeking, amongst other things, the return of the monies and the interest of RM3,225,000 pending the outcome of an appeal by the foundation to the revenue authorities for tax exemption and the outcome of Kuala Lumpur High Court Suit No S1-22-564-91".
Chew said that even as the foundation brought a suit to court for the return of the RM10 million, the interest from the fund should have increased over the past nine years.
He pointed out that, at normal savings interest, the interest plus principal of RM10 million should have accrued to about RM25.1 million by the end of this year, and the total could be higher if the amount had been put in fixed deposit or higher-yielding accounts.
"MCA should show all documents to prove that for 20 years that the fund had not been used or abused by any party," he said, adding that the MPHB annual report is not adequate enough to prove anything.
No change
Meanwhile, MCA Youth chief Ong Tee Keat said he would also like to know why the accounts figure showed no change from nine years ago.
He suggested that MPHB should re-consider its decision to appeal to the court as the move will again delay the operation of the fund.
In 1980, Chang signed an agreement with then MCA investment arm, MPHB, entrusting the company to manage the fund under a Board of Trustees currently comprising party president Dr Ling Liong Sik, secretary-general Dr Ting Chew Peh, deputy president Lim Ah Lek and former deputy president Lee Kim Sai; other members are MCA leaders Wong See Wah, Dr Sak Cheng Lum and Lim Si Cheng.
Ling, when met in the Parliament lobby today, confirmed that MPHB will appeal against the High Court's decision on Sept 30 which ordered the return of the RM10 million to General Holdings, a company owned by the late Chang's family.
Asked whether the legal process will consume a lot of time, he said that they understand the problem, but are hoping that the court will speed up the hearing anyway.
On Monday last week, Ling also announced the formation of a three-member committee headed by MCA treasurer William Chek to give a full report on the status of the fund ([#1]No intention to criticise Ling, say MCA Youth chief[/#], Oct 9).
Last Friday, Nanyang Siang Pau reported that Tan Koon Swan, former MCA president and a former MPHB managing director, urged MCA to be honest and brave to disclose the facts fully, even if it showed negligence in managing the fund.
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[#2]MCA owes Chinese organisations full explanation[/#], Oct 11
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