Datuk Zainal Abu Zarin
KUALA LUMPUR: The Malaysian Paralympic Council (MPC) president Datuk Zainal Abu Zarin who came under fire for allegedly investing RM4 million into an event management company has denied claims that the money was mismanaged.
He said such claims were an effort by some irresponsible people who were out to discredit him and topple him as MPC president.
“The individuals concerned have twisted the facts to confuse the people and tarnish the image of the MPC. These individuals want the people to believe that MPC was irresponsible and not managing the funds to ensure the welfare of paralympic athletes,” he told Bernama here.
A local daily had earlier reported that MPC’s RM4 million investment in Paralimpik Ventures Sdn Bhd (PVSB) in 2008 had come under scrutiny, as the events company was helmed by Zainal Abidin Abu Zarin and his two sons, Idi Irwan and Ilia Ikhwan.
The report alleged that RM2 million was transferred to the PVSB on April 4, 2008 and another RM2 million was transferred about two weeks later, on April 17, 2008.
The cheque and telegraphic transfer were allegedly signed off by Zainal and its then treasurer, Liew Yoon Loy.
The daily in its report said according to minutes of MPC’s Sept 29 annual general meeting (AGM), RM3.8 million of a RM4 million investment in PVSB was written off due to the “recoverability” of the investment.
In a note at the end of its financial statement for the year ending December 2010, it was minuted that the MPC had on July 5, 2011 received a letter where PVSB made a commitment to repay RM200,000 plus 5 per cent interest by March 2012.
The MPC subsequently received another letter dated Aug 6, 2012, where it was mentioned that the balance of the principal (RM3.8 million) would be paid latest by 2014.
However, during the MPC’s AGM last year, the executive board on Sept 23, 2012 had decided to write off the RM3.8 million, and this will be reflected in the financial statements for the financial year ending Dec 31, 2012.
Zainal said such claims were baseless because the money was invested to increase MPC’s revenue since the council had suffered a financial difficulties in the 1990s.
In the past, the MPC was totally dependant on funds from the Welfare Department before the Ministry of Youth and Sports took over the role in 2006.
The situation forced MPC to look for alternative avenues to source funds for MPC’s activities and programmes.
“To source for additional funds, the MPC exco unanimously agreed to set up Paralimpik Ventures Sdn Bhd with a start up capital of RM4 million that was derived from MPC’s kitty. The money was funds set aside through careful spending and the Sports Commissioner’s Office was informed,” he said.
Zainal said what was planned however, did not materialise and PVSB failed to achieve the expected returns due to the economic downturn in 2008 but when the economy was favourable the PVSB had contributed funds to MPC, to a tune of RM700,000.
He added that MPC and PVSB had always submitted their reports and accounts to the Sports Commissioner’s Office yearly and denied claims that the RM4 million was additional funds allocated for organising the 2006 Kuala Lumpur FESPIC Games. — Bernama