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Gov't gave RM10m to Idris' co-owned firm, claims DAP MP
Published:  May 19, 2016 1:54 PM
Updated: 10:24 AM

The government should immediately stop funding any projects by a firm co-owned by Performance and Management Delivery Unit (Pemandu) chief Idris Jala, said DAP's Serdang MP Ong Kian Ming.

The government had allocated RM10 million to BFR Institute to organise the Global Transformation Forum (GTF) in October 2015, a written reply in Parliament revealed.

Ong claimed Idris owned 51 percent of the company, while Pemandu Corporation owned the remaining 49 percent, based on a Companies Commission of Malaysia (CCM) search when the forum was organised.

The money was used, among others, to pay speakers including former Hollywood star and California governor Arnold Schwarzenegger, who was paid US$200,000, not including other related travel fees, Ong (photo) said.

Idris is free to use his experience in Pemandu to sell his services to foreign governments, via BRF Institute, but it must not be on the taxpayers' tab, Ong said.

"The Malaysian government should not play any role in funding a private company that is majority-owned and controlled by a private individual, namely Idris.

"While Idris and the government may try to spin the activities of BFR Institute as part and parcel of the country's overseas outreach, it should be obvious that this is ethically indefensible," Ong said in a statement.

"As a man of principle and integrity, I am surprised that Idris is comfortable with this funding arrangement, especially since he has been in the forefront of promoting transparency and accountability," he said.

As such, the MP said the government via Pemandu should immediately divest its stakes in BFR Institute.

The government should also stop funding the private firm's activities.

Idris was formerly minister in the Prime Minister's Department.

Responding to the accusation later, Idris said Ong was "wrong" and that BFR was wholly owned by Pemandu Corporation.

Idris had initially owned a 51 percent stake in BFR in his capacity as Pemandu Corporation's trustee, Pemandu said in a statement.

It said this was because Pemandu Corporation's Memorandum and Articles of Association (M&A) only allowed Pemandu to hold 49 percent equity in other companies but this was finally amended on July 10, 2015.

This finally allowed Pemandu Corporation to take full control of BFR on July 20, 2015.

'Conference very impactful'

In a written reply in Parliament on May 16, Minister in the Prime Minister's Department Abdul Wahid Omar said the RM10 million was used, among others, to pay "respected chiefs of state, accredited speakers and certain individuals to provide inspiration" to participants.

He said the forum was also to showcase transformation programmes to other countries like Tanzania, South Africa, India and other corporate bodies.

"This cost is small compared to the opportunity to promote BFR's methodology to bring about positive impact and outcomes to the country.

"Therefore, the GTF can raise confidence in Malaysia's socio-economic development and interest by other developing countries could spark joint ventures among partipants and notable parties from Malaysia and abroad," he said in the reply to Ong.

"The government believes GTF has a big and positive impact on Malaysia in the international arena, economically and socially," Abdul Wahid said.

Related story

Idris Jala: You're wrong, I don't own company that got RM10m gov't funds
 

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