The Islamic Economic Development Foundation (Yapeim) today dismissed a news report alleging that it lost RM12 million through a gold pawn scheme involving 1,000 Ar-Rahnu customers.

Yapeim board of trustees chairperson Mohd Daud Bakar said an audit report by PricewaterhouseCoopers and a recent internal report showed that 17,053 of its clients involved in its Ar-Rahnu scheme received surplus payments totalling RM5.4 million.

He said unclaimed jewellery totalled 388kg and is valued at RM62 million – not 300kg with a value of RM80 million as alleged in the news report.

"There were no RM12 million losses as alleged, instead Yapeim received a total of RM9.4 million in income from safekeeping fees,” he said in a press conference in Kuala Lumpur today.

The news report had cited a confidential government document related to the foundation's expenses.

Following this, Daud said Yapeim was giving the news portal until Friday to issue an apology, failing which the foundation will consider legal action.

"We will be seeking legal advice on whether we should take legal action after the deadline given.

"We are taking this matter very seriously, as the allegations are not only baseless, but have implications on Yapeim's reputation,” he said.