Wednesday October 21, 2009
Directors spent thousands on trips and paid bonuses without approval
By SIRA HABIBU
PETALING JAYA: Directors of the Kedah state-owned Yiked Kuari Sdn Bhd (YKSB) spent RM85,375 for family day trips to Hong Kong and New Zealand and were also paid bonuses totalling RM40,637 without prior approval.
The Auditor-General’s (A-G) Report 2008 also said the board of directors of Yiked tried to get the approval during the Annual General Meeting for trips to Hong Kong in 2007 and New Zealand in June last year.
There was also no approval for the bonus payments to the general manager, deputy manager and three executives of Yiked, a wholly-owned subsidiary of Yayasan Islam Negri Kedah, said the report.
The auditor also noted that honorarium payments of RM60,000 in 2006, RM150,000 in 2007 and RM99,000 last year were not endorsed during the AGM.
Under Section 132 (2) of the Companies Act 1965, a company director could not use his position for self gain without the approval or endorsement of a general meeting, said the A-G.
It also noted that the board of directors’ allowance was increased from RM500 to RM1,000 in 2006, without any endorsement.
The auditor also described Yiked’s performance as not satisfactory and having weaknesses in corporate governance, management and finance as well as risk management.
A quarry project agreement between Yiked and a contractor did not favour the company.
The auditor also expressed dissatisfaction over the de-gazetting of 4,478ha of forest reserves in Pedu, Padang Terap, Kisap, Malut, Bukit Perak, Bukit Enggang, Gunung Jerai, Gunung Bongsu, Gunung Inas, Rimba Teloi and Ulu Muda for various projects including resorts and quarries by the Kedah government.
Some 800ha of the Malut forest reserve was de-gazetted for Permodalan Kedah Bhd and another 100ha in the same area was de-gazetted for the Malaysian Royal Air Force, while 126,563ha (60%) of the forest areas in Kedah had yet to be gazetted.
It also noted that 90,685ha (74%) of areas classified as catchments had yet to be gazetted and due to the delay strata titles had been awarded to the public.
However, the auditor said he was pleased that the Kedah government practised cost-saving policy. The management budget had decreased by 0.1% to RM428.33mil, while its revenue from forest premiums has increased by 205.5% from RM9.21mil in 2007 to RM28.1mil last year.
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