Cops reopen case of "missing" RM3.8m paralympic funds

As published in Malay Mail today

By Vijhay Vick

PETALING JAYA - Police have opened an investigation into the case of the loss of RM3.8 million from the Paralympic Council of Malaysia (PCM).
 
Brickfields police chief ACP Muhammad Azlee Abdullah confirmed the case was being reopened by their Commercial Crimes Investigations department, which took statements from suspended PCM president Datuk Zainal Abu Zarin and secretary-general Siti Zaharah Abdul Khalid.
 
It's also understood police have requested for the findings of a previous investigation by Malaysian Anti-Corruption Commission (MACC) as well documents from a PCM's probe.
 
The case of the missing funds were brewing in PCM since 2011 when PCM council members questioned the transfer of RM4 million from PCM coffers to Paralimpik Ventures Sdn Bhd - a company set up to invest the council's funds in 2008.
 
In June 2011, Malay Mail lifted the lid on the story when members claimed they were unaware of the transfer of funds.
 
Police reports were lodged and MACC also stepped in with a probe of their own. The commission forwarded their findings to the deputy public prosecutor who decided against taking action on Zainal.
 
It was later found that the transfer of funds received a backdated approval by PCM's executive council. 
No returns were seen until 2012, when Paralimpik Ventures made a RM200,000 repayment to PCM with promise a repayment plan until 2014.
 
The repayment plan was forgotten when PCM's wrote off the RM3.8 million loss in September 2012.
In May, PCM's steering committee found the money was supposed to be invested in a capital guaranteed fund handled by Merchantile Point Sdn Bhd but it was invested in a non-capital guaranteed fund instead.
 
The steering committee’s report read: “This non-capital guaranteed fund, handled by CIMB wealth advisers subsequently caused a loss of RM1,604,471.55 and to which Paralimpik Ventures, on their volition and without prior consent of PCM, cashed out on this non-capital guaranteed fund handled by CIMB wealth advisers and invested the remaining sum of RM2,395,528.45 in a foreign unsecured and non-capital guaranteed fund with All4Ones Enterprises, LLC Florida in 2009.
 
The report also stated Paralimpik Ventures, which Zainal and his two sons owned, did not seek legal and financial advice as to the credibility or the financial standing of the foreign funds when they proceeded to invest with All4Ones.
 
At the recent Annual General Meeting, PCM members voted to cancel the RM3.8 million write-off and reinstate the amount into PCM's account as a bad debt.
 
The council had also decided to suspend Zainal from his post because of his direct involvement in Paralimpik Ventures.
 
In July, sports commisioner Ahmad Shapawi Ismail urged the authorities to reinvestigate the case following the steering committee report.
 
ALSO read:

MACC-DPP discord over RM4m paralympic fiasco 

Paralympic Council of Malaysia suspends president, trying to recover 'lost' funds

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