The Malaysian Insight

THE disclosures of financial misconduct in the Malaysia Islamic Economic Development Foundation (YaPEIM) is the first step towards the restoration of the institution’s reputation and the people’s trust in it, said Minister in charge of Islamic affairs, Dr Mujahid Yusof Rawa. 

He said that the government was committed to ensuring transparency and credibility in the various state institutions, especially those related to his portfolio.

“Since I became minister, we’ve had a policy to look into all these agencies, into which we carry out independent investigations as we have done in the rehabilitation of Tabung Haji. We have also done the same with Iksim, and now it is YaPEIM.

“We are taking action to restore these agencies, especially the ones under us that receive funds for orphans. We want to restore the confidence of the people in them,” he said at the launch of Rahmah Mosque in Masjid Jamek,  Kuala Lumpur.

YaPEIM trustees board chairman Mohd Daud Bakar today admitted the former management of the foundation had misappropriated funds.

Speaking to the media, Daud said following the expose, the board has restructured the committees in YaPEIM for better administration of the foundation.

PwC has also been appointed to audit YaPEIM’s accounts.

The Malaysian Insight reported last week that RM1 million of YaPEIM’s funds meant to provide aid for orphans were misappropriated to pay the legal fees incurred by an aide to the former prime minister Najib Razak aides.

The Malaysian Insight had sighted confidential government documents reporting alleged misappropriation of funds at the Islamic institution.

The reports had also revealed that the director and senior board members were paid unreasonably high salaries and bonuses, and that they received allowances from YaPEIM subsidiaries. 

Mujahid said he believed that with the introduction of a new board of directors, the institution will be revived to receive further ​​contributions in aid of orphans. 

“I think that’s why he has revealed what was happening, which is for the basic purpose of returning public trust in this institution, so that Yapiem will see increased contributiond and we are enabled to many things for the development of Islamic economics.”  – May 15, 2019.