RM10m gone in 3 days - The Sun

PETALING JAYA (April 24, 2008): By R. Nadeswaran and Terence Fernandez

Three days after their husbands lost power to rule Selangor, the wives got into the act – plotting to dissolve a welfare body and remove almost RM10 million from its bank accounts.

But their attempts have been thwarted by Mentri Besar Tan Sri Abdul Khalid Ibrahim who wrote to the Registrar of Societies (ROS) to question the validity of the decision to dissolve the Association of Wives of State Assemblymen and Members of Parliament in Selangor (Balkis).

It is learnt that Abdul Khalid has ordered a thorough investigation and audit into the affairs of the association which was set up in 1985 to undertake welfare work.

According to documents sighted by theSun, Datin Seri Zaharah Kechik, the wife of former mentri besar Datuk Seri Dr Mohamad Khir Toyo had on March 11 convened an extraordinary general meeting of the committee to dissolve Balkis and close its bank accounts. The following day, the accounts were closed, with the money transferred to another account and then to Bakti – the federal Organisation of Wives of Ministers which Balkis is affiliated to.

On March 13, the former exco members of Balkis issued a notice of dissolution to the ROS, which included amending the constitution of Balkis and establishing a new organisation – Balkis-BN, is among the names suggested.

“This was to prevent the Balkis premises (Kompleks Wawasan Balksi - KWB) and the association itself from being taken over by the new state government,” said an insider.

“Once this was done, then the money will be transferred back to the new organisation,” the insider added.

However, the ROS in a letter stated that Balkis' application for dissolution was incomplete and gave it 30 days to furnish additional information.

The constitution of Balkis states that the mentri besar's wife should be the president. Sources in the state government argue that since Mohamad Khir is no longer MB, Zaharah is no longer the president and has no power whatsoever to dissolve the association or liquidate its funds. Incidentally, the constitution also states that the organisation must remain apolitical.

Legal experts say by right, following the events of March 8, the exco headed by Zaharah should have convened an emergency meeting to discuss the handing over of Balkis to a new exco – with the new president being Abdul Khalid’s wife Puan Sri Salbiah Tunut.

Bakti, meanwhile, according to minutes of a recent meeting it held, had under advice of a sitting judge received the RM9.9 million from Balkis, which it has placed in a fixed deposit. The money would then be transferred back to the new organisation set up by the former Balkis members.

Bakti would also take over a Special Education Project involving millions of ringgit until the “new” Balkis is formed.

This is clearly goes against Balkis’ constitution which states that in the event of a dissolution, all monies must be transferred to the government or a similar fund, with the approval of the Inland Revenue Board director-general.

Meanwhile, it is learnt that Abdul Khalid had in his letter to the ROS on Wednesday (April 23) said of the amount in Balkis’ accounts, about RM850,000 was donated by state government companies – Kumpulan Darul Ehsan Bhd which gave RM268,862 last year and Perbadanan Kemajuan Negri Selangor (PKNS) which contributed RM590,379.50 between 2006 and 2007.

It is understood that Abdul Khalid is also investigating the transfer of 43,560sq ft of land in Section 7, Shah Alam, which the state government had in 2002 offered to Balkis at a nominal cost of RM250,000 (RM5.74/sq ft) for the setting up of a shelter home for women that cost RM5 million.