KUALA LUMPUR – Selangor Athletics Association (SAA) vice-president Varughese Abraham has hit back at his former president Datuk S.M. Muthu, who was recently sacked over alleged missing funds.
Abraham said that he was puzzled by a news statement by Muthu that he had every right as president to generate money for the association and so there was no need for him to seek the approval of the affiliates and executive committee members on the matter.
“Probably he has failed to understand that the management of SAA is entrusted to the elected office bearers as stated under Clause 17(17.1) (of the SAA constitution).
“As such the president is duty-bound to discuss and explain his planning for SAA to the main committee and probably obtain their approval before sanctioning it,” he said to The Vibes.
“Although his motive might be noble, he cannot run an association in an autocratic manner where all the members of the main committee are left in the dark.”
On Monday, Muthu was quoted by Free Malaysia Today as saying that he had invested RM110,000 from SAA’s fixed deposit account in various businesses.
However, Abraham reiterated to The Vibes that the funds were taken without the council’s approval, which goes against SAA’s constitution.
“This matter was never tabled at any annual general meeting (AGM) or at an extraordinary general meeting (EGM), and as such the withdrawal is against the SAA constitution, which he had violated,” Abraham alleged.
“These are public funds. How can someone – even the president – touch the money? Why didn’t he get the approval of the affiliates and the main committee members, if his intention was noble?
“There is a reason we have the constitution. There is a process to do things and it should be followed regardless of your position in the association.”
Abraham stressed the need to be transparent when it came to public funds, as nobody has the authority to touch funds from the association without the consent of the main committee members.
“We don’t care how much is in the current account as we only want to know why he took the RM110,000 out from the fixed deposit,” Abraham said.
Approval needed for large transactions
If there have been funds received through the so-called unauthorised investment amounting to RM55,000, as Muthu has claimed, it should show in the statement of accounts of the association throughout the past four years, he said.
“It was neither tabled nor discussed at any SAA council meetings, nor were there any minutes to support these claims,” Abraham said.
According to the constitution, no approval is needed for use of funds amounting up to RM4,000, but anything above that needs the approval of the executive committee members, he pointed out.
However, for funds above RM25,000 to be used, the matter must be discussed at the AGM or EGM.
On September 7, The Vibes reported the alleged mishandling of funds in the association as revealed by the association’s treasurer R. Murugan and Abraham.
Murugan had lodged a police report regarding the alleged offence implicating Muthu and SAA’s former secretary Abdul Rahim Mohd Noor.
On Sunday, at the association’s EGM, Muthu was stripped of his president's post and membership for life after 39 affiliate members unanimously agreed to the decision.
Similar motions were made against Rahim and former treasurer Mohd Fauzi Manivannan.
Abraham added that the claim that the EGM was illegal is not true, as 16 officially registered affiliates had signed a request for the meeting, a copy of which the main committee had forwarded to the sports commissioner.
“Refusing to call for an EGM as requested by affiliates members as per Clause 16(16. 1 c) of SAA constitution is again a violation by Muthu,” Abraham alleged.
“If Muthu was genuine in his actions, he would have attended the EGM and explained the situation to affiliates, but he decided not to attend.
“We hope the sports commissioner and police can investigate this matter further as we seek justice,” said Abraham.
Sports commissioner Ibrahim Mohd Yusof had told The Vibes that it is only right to allow police to complete their investigation before stepping in.
“I know about the accusation, and it comes under criminal breach of trust. I cannot just get myself involved when police are investigating. I want to evaluate their (police) findings first to know if there’s a need for me to step in,” he said. – The Vibes, October 26, 2021
