The Public Accounts Committee (PAC) has urged the Prime Minister’s Department (PMD) to evaluate whether the National Professors’ Council (NPC) remains a vital force in driving academic expertise to support the nation’s development.

This is after the committee identified several concerns, including the inability to determine NPC’s effectiveness and functions.

“This is because the key performance indicators (KPIs) were not established or reported to the PMD, and funds were misallocated, with money not being channelled to the relevant chapters.

“As a result, NPC’s activities have not been carried out in line with its founding objectives in 2014,” said PAC chairperson Mas Ermieyati Samsudin at a press conference today.

Mas Ermieyati also noted that the PMD has not fully monitored the NPC since Nov 8, 2021, which has led to several irregularities in its management.

“No reports regarding NPC’s activities have ever been submitted to the PMD, leading to a lack of full control and oversight of the NPC,” she added.

Company secretary ‘ineffective’

She further highlighted that allowances paid to NPC’s Board of Trustees in 2022 and 2023, totalling RM207,000 from a government grant of RM7.78 million, were made without the approval of the minister responsible for the Companies Commission of Malaysia.

“The company secretary has proven ineffective, particularly in providing accurate advice to the Board of Trustees on compliance with the latest Articles of Association (2019) and guiding the board on its decisions,” she explained.

Upon concluding the proceedings, the committee made six recommendations, including assessing the relevance of the NPC.

“If the government decides to retain NPC as a company limited by guarantee (CLBG), it should be placed under the Higher Education Ministry, based on its functions and roles,” Mas Ermieyati said.

“Following this recommendation, the PMD should also update the PAC on the government’s decision regarding the NPC’s status, whether it remains as a CLBG agency under the government or otherwise, during the follow-up action proceedings,” she added.

The Masjid Tanah MP also emphasised that NPC must appoint a competent company secretary to ensure proper governance, particularly in adhering to all relevant company laws and regulations.

In July, Minister in the Prime Minister’s Department (Federal Territories) Dr Zalihah Musfata announced that the government would reassess the NPC’s status following findings in the Auditor-General’s Report, which revealed that the NPC had used RM373,516 to fund two companies owned by members of its Board of Trustees.