The state has sacked Yayasan Selangor deputy general manager Mohd Saifulruddin Sulaiman, rejecting an appeal to keep him.

Menteri Besar Khalid Ibrahim said in a statement today that he had signed a 24-hour termination letter, dated Feb 18, to Mohd Saifulruddin.

NONE "On Feb 17, a special board of directors meeting unanimously agreed to terminate the contract of the deputy general manager on grounds that he failed to fulfil his responsibility and maintain good financial management," said Khalid ( right ), who is the chairperson of the board.

The audit report also recommended for the sacking of general manager Ilham Marzuki.

"(It should) be done for the reason that the both of them failed to uphold the interest of the foundation and most of the decisions taken as though done on self-interest," stated the report.

Another revelation was the foundation had suffered a deficit of RM7.41 million as of November last year.

According to the audit report, a budget of RM32 million was set aside for 2010, but the foundation had spent RM36.19 million, an excess of RM4.19 million.

The state subsidiary earlier snubbed the recommendation of the audit report, submitted by the internal audit division of the Selangor state secretary's office, that Mohd Saifulruddin be sacked.

He was suspected of misconduct when a probe was called following disclosure that the state education foundation allegedly spent more than RM300,000 on its 40th anniversary royal luncheon.

In the audit report released today, the total expanses for the entire anniversary celebration was a staggering RM996,472, with RM387,232 spent on the luncheon.

The cost also included RM225,000 spent on 10,000 copies of the Al-Quran, RM206,000 on memorabilia and clothing, as well as RM178,200 for a fishing competition.

It was also stated that the total amount was paid in full although the activities were not conducted.

The anniversary celebration, which was scheduled for November last year, was called off after the Sultan of Selangor, Sultan Sharafuddin Idris Shah, refused to attend the extravagant event following the exposè.

Bankrupt deputy and second choice GM

Soon afterwards, Mohd Saifulruddin was asked to go on a month's leave, with immediate effect, by the menteri besar in order to speed up the investigation into the controversy.

But Mohd Saifulruddin disobeyed the order and insisted on attending board meetings.

Yayasan Selangor's general manager, Ilham Marzuki, had also appealed through a letter on behalf of his deputy, but it was rejected.

NONE The audit report also showed that Mohd Saifulruddin, who was appointed on May 3 last year, has been issued with a notice of bankruptcy.

Ilham was not the interview panel's most preferred candidate when he was roped in on March 15, 2010.

The report also said Ilham and Mohd Saifulruddin were both promoted, in one and two months respectively, on the approval of the foundation's board of directors, but without the agreement of the state authorities.

However, the pair did not practise "good corporate management" and from March to November last year, 18 employees resigned and 33 percent of the workforce, or 50 employees, were transferred.

"The insubordination they had shown to the menteri besar's instruction and failure to comply with procedures has caused loss of morality as a state subsidiary and affected the foundation's growth and development," said the audit report.

It was reported previously that the Malaysian Anti-Corruption Commission (MACC) is probing on the aggravated expenditure and excesses of the foundation.

The foundation was set up in 1970 to manage the state's human capital development and to focus on providing education opportunities, scholarships and training for its people.