Auditor: Balkis never submitted accounts

The external auditors appointed to go through and verify the accounts of the Wives of Selangor Assemblymen and MPs Welfare and Charity Organisation (Balkis) never received any documents from them for auditing last year.

In a statement issued today, chartered accountant Yee Choon Kong said Balkis failed to send in its financial records for last year including bank statements, official receipt books, payment vouchers, supporting documents, fixed deposit receipts, minutes of meetings, details of membership and subscription list.

"My firm, on a number of occasions, had called Balkis treasurer Suraimi Haji Sapuan to request them to send in (these documents) to our office to enable us to conduct the annual financial audit in respect of the financial year ending Dec 31, 2007.

"Our calls to the treasurer remain unanswered and thereby confirm that the financial statements of Balkis remain unaudited. Neither have I issued a signed audit report (for last year) nor have I finalised Balkis accounts before its funds were transferred," he explained.

The Kuala Lumpur-based audit firm owned by Yee was rebutting former Selangor menteri besar Dr Mohd Khir Toyo (left) claims that Balkis’s 2007 accounts had been audited and the organisation had the right to transfer its funds without an auditor's approval under its constitution.

‘The RM9.9mil in the Balkis bank account transferred to the Association of Wives of Ministers and Deputy Ministers (Bakti), was done in accordance with the organisation’s constitution and accounted for, as the auditor had finalised the 2007 accounts,’ Khir was quoted in press reports today as saying.

Balkis - helmed by Khir’s wife Zahrah Kechik - controversially dissolved the charity body and transferred RM9.9 million to another organisation, the Association of Wives of Ministers and Deputy Ministers (Bakti) on March 11 during an emergency meeting.

Zahrah defended the controversial move and rebutted new Selangor Menteri Besar Abdul Khalid Ibrahim’s statement that Balkis was only a trustee of the money and did not have the right to transfer its funds.

Balkis’ drastic move is believed to be linked directly to the March 8 general election result which saw Selangor - previously under the BN - falling to the Pakatan Rakyat coalition. Following this, Balkis members whose husbands or wives were BN state assembly persons or MPs would have to resign from the organisation to make way for the wives and husbands of Pakatan Rakyat representatives.

The move by Zahrah to dissolve the body and transfer its funds would thwart efforts by the new office-bearers to continue implementing the charitable organisation’s various projects or accessing its funds.

Meanwhile, Khalid (right) has also asked the Registrar of Societies (ROS) not to approve the application to dissolve Balkis until contributions from all state-owned companies to the body have been ascertained.

It was made known that part of Balkis’ funds came from state-owned companies like Kumpulan Darul Ehsan Bhd which contributed over RM268,000 last year and the Selangor State Development Corporation which contributed more than RM590,000 in 2006 and 2007.

Yee explained that he was appointed by Balkis on June 30 last year during its annual general meeting at the Klang Executive Club.

According to him, the organisation’s constitution imposes a requirement to appoint an external auditor licenced by the Finance Ministry to act as its statutory auditor.

He also confirmed that neither Zahrah nor any Balkis members or Khir had consulted him on the transfer of the RM9.9 million and he was unaware whether the organisation appointed a new auditor without his knowledge.

Yee pointed out that under Section 210 of the by-laws on Professional Ethics, Conduct and Practice of the Malaysian Institute of Accountants, the new auditor for Balkis - if any - cannot accept their appointment before consulting Yee.

"Until today, we have not had enquiries from any new firm of auditors for Balkis," he stated.