YOUTH-based Muda has set a new benchmark for political parties in Malaysia by releasing an independent audit on its fundraising for the December 2021 floods.
Muda president Amira Aisya Abd Aziz said the party wanted to adhere to the principles of transparency and accountability, adding that Muda is the first political party in Malaysia to use a third-party audit firm for humanitarian aid programmes it has conducted.
Although this task was not easy, Muda wanted to set an example for other political parties, she said.
“Muda is satisfied with the results of this audit report and is proud that it achieved a high sample without any exceptions,” she told The Malaysian Insight in an exclusive interview.
The Malaysian Insight was shown a copy of the audit, which was conducted by one of the biggest firms in Malaysia. Due to a non-disclosure agreement, the identity of the audit firm will not published.
The audit report was an agreed-upon procedures (AUP) engagement on total expenses for the flood relief programme.
Based on the audit report, of the total RM2,070,767 spent on the party’s ‘Mari Bantu Mission’, the audit firm conducted random sampling based on expenditure listings provided by Muda’s Central Executive Committee.
Of that, a total amount of RM1,016,668 (49%) was tested, where no exceptions were noted.
“The auditors conducted the audit on a sampling basis, covering 49% of the population (amount) and did not record any exceptions. Samples were randomly selected from all categories, including high-value and voluminous items,” said Amira.
She said the auditors completed the audit report based on ethical requirements in the Regulations (on Professional Ethics, Conduct, and Practice) of the Malaysian Institute of Accountants, and the International Code of Ethics for Accountants by the International Ethics Standards Board for Accountants.
Additionally, the auditors also applied Approved Standards in Malaysia on Quality Management, ISQM 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements in concluding the report.
Expressing her relief at finally getting the audit report completed, Amira said that the party will also be sharing the redacted audit report with all the donors who contributed to the flood relief programme.
“We will soon invite the donors to thank them and provide them with additional details if necessary.
“That invitation will be included in the email that will be sent to them,” the Puteri Wangsa assemblywoman said.
The topic surrounding the audit report of Muda’s 2021 flood relief programme has been a point of contention among current and former party members, as well as other political parties.
Reason for delay
Noting the delay in completing the audit report, Amira explained the challenges in getting it done.
Given that Muda’s main focus during the flood relief programme was on fieldwork involving volunteer operations, aid, and logistics, Amira said the data collection process, such as receipts, invoices, and information covering purchase transactions and direct assistance to flood victims, took time to complete.
“This is due to the lack of full-time staff who could efficiently handle document management tasks.
“Moreover, all personnel involved in the project implementation were volunteers, where anyone could join this flood mission.
“When volunteer recruitment was done, it was without considering background experience. Hence, the lack of experience in disaster management added challenges in managing volunteer mobilisation operations, logistics, documentation, and direct aid,” she said.
With the flood mission conducted in several states, Amira said the communication process for document collection between Muda’s team, volunteers, and civil society groups took time.
She said it required continuous coordination to ensure all information and complete documents were obtained before meeting with the audit firm.
Despite the flood relief programme starting in December 2021, Amira pointed out that the audit process only began in September 2022, after post-flood relief works.
In the intervening months, Amira said the party continued to hold various post-flood aid programmes to help victims in various states.
This included Project Bangkit, Project Langkah, and Project Teduh.
“These significant challenges provided Muda with the best opportunity to gain experience in planning and coordination to implement large-scale flood relief efforts at that time.
“For a new political party that relies solely on volunteers, this was a bittersweet experience that will not be forgotten by all to this day,” she said.
Support for political funding act
Amira said that Muda was officially registered as a political party on 23 December 2021, after a 15-month battle to obtain approval in court.
During this period, she said the flood disaster that struck eight states prompted the party to initiate and lead a flood disaster mission for the Malaysian people.
She said Muda took the initiative with diligence and humility to extend help through several fundraising campaigns.
She added that the party also collaborated with its supporters, non-governmental organisations, and Malaysians in general to alleviate the burden of flood victims at that time.
Despite not receiving approval from the Registrar of Societies Malaysia as a legitimate political party, Amira said Muda remained committed to serving the people by filling the leadership void left by the federal and state governments in handling this crisis.
“Despite facing various obstacles, Muda took immediate steps by launching the Mari Bantu Mission – distributing essential supplies and facilitating post-flood cleanup efforts.
“Muda initially focused its relief efforts in Selangor with a fundraising target of RM10,000.
“However, after learning that other states were also affected, Muda utilised various social media platforms to secure additional funds and volunteers for the flood relief programme,” she said.
Amira said that in less than seven days, the Mari Bantu Mission successfully raised over RM2 million in cash donations and goods from more than 40,000 donors and received a volunteer database of 10,000 individuals willing to join Muda in this noble effort.
Amira also said that through Muda’s initiatives, it successfully assisted eight states affected by the floods.
Additionally, she said Muda also provided post-flood aid to several Pakatan Harapan members of parliament during the flood relief efforts, including Hannah Yeoh (Segambut), Fahmi Fadzil (Lembah Pantai), Fong Kui Lun (Bukit Bintang), Young Syefura Othman (Ketari/Bentong), and others.
Now, with Muda concluding the audit report for their humanitarian cause, they have called on all political parties and coalitions in Malaysia – Pakatan Harapan, Perikatan Nasional, Barisan Nasional, Gabungan Rakyat Sabah & Gagasan Rakyat Sarawak – to emulate them in auditing programmes involving public funds.
“If Muda can do it, they should also follow this step to show commitment to the principles of transparency and accountability,” Amira said.
She said Muda fully supports the enactment of the Political Funding Act in Malaysia.
“This is an important step to ensure transparency and accountability in our country's politics, which will strengthen public trust in political institutions,” she said. – August 16, 2024.
