Royal Selangor On Fire Battling Money Investigation

Clearly what was earlier reported on this blog on the myriad of problems infecting the two premier social clubs in Malaysia,  The Royal Selangor Club (RSC) and the Royal Lake Gardens Club (RLGC) are more than mere allegations.

On 19 December it was reported that some members of the RSC walked out of their EGM (Extraordinary General Meeting) held in Kuala Lumpur in what has become common practice by a desperate group of disgruntled former board members and members supporting the old board.

The walk out is one in a series of staged walkouts held at various levels of the club organisational structure, with others that occurred previously following the election of a new board in July of 2016. These walk outs appear designed to stop and to frustrate the current board of the RSC from adopting and passing resolutions allowing it to further investigate the conduct of the previous board and the parlous state of its finances.

The practice of walking out, commonly known as Quorum Busting has become the hallmark of a dissident group within the RSC resisting independent scrutiny of its finances. 

Disruptions at the RSC are believed to be directed by a former president  of the club aided by a group of disgruntled members who appear to believe that they should  be consulted on anything and everything the new RSC board decides upon.  There appears to be resistance particularly to the prospect of an independent external audit into the club’s finances. This group of dissidents see it otherwise and claim a denial of natural justice principles as their reason for Quorum Busting.

What is evident is the proof of serious financial misconduct/ misappropriation and diversion of funds and other property at the RSC over the term of successive previous administrations. It is either that or simply the absence of financial and regulatory oversight at the club over the years; or further still a culture of gross negligence relating to the RSC’s finances over a period of at least 3 years.

This point is disputed by the dissidents only to the extent they will not allow a properly called meeting to conclude by their  practice of Quorum Busting.

The device of frustrating proper board and club business is an invitation to a court sequel hopefully ending with a court ordering an independent external audit into the RCS’s finances. The motion whether called and approved or defeated for an independent external audit of club (RSC) finances is inevitable in one form or another.

Problems at the RSC (and the Lake Club) run much deeper than mere management style differences or denials of natural justice. It involves a culture of deceit, deception and dishonesty so deeply embedded into the clubs management culture.

The recent walk out staged at the EGM raises serious questions about unlawful practices in the club that can be traced to a small coterie of members and office holders under previous management and the previous board of the RSC.

Dissidents within the RSC it appears, do not want  what an investigation has already begun to throw up to see the light of day.  And from what is available in information the dissidents have much reason to fear a comprehensive external independent audit of the club.

Quorum Busting and walkouts do not help the situation or anyone party solve their problems. It is an unlawful and unprincipled action that compels an external investigation into the club and its finances by independent external auditors. A police report perhaps which will be drawn up in due course.

The walkout has drawn an immense amount of curiosity, heat and interest into the RSC, its finances and its history. People – especially members – have begin to volunteer information identifying unlawful practices in the past by individuals relating to unauthorised, unlawful practices that they as members were never allowed to table under the former board. Same issues the dissidents now complains of-Not being heard.

On the information available, there has already been discovery of misappropriation, misdirection and diversion of club funds under previous administrations that total more than MYR 1,500,000, and possibly twice as much.

Money diverted and directed to the uses of individual members, for their benefit and in at least one instance to a complementary private business that absorbed club property in a seemingly seamless transfer appears to have been common under the RSC’s previous boards and managers.

It appears that the walkouts and the “black operations” of the few suspended and serving members is a desperate rear guard action by and on behalf of the few who benefited from receipt of RSC property and who now may be called to account for the missing funds at the club.

These dissidents appear to be disrupting and frustrating the functions of the present board and investigators by preventing membership and the board at meetings from advancing their investigations into misappropriation of club monies through the legitimate procedure and process of meetings.

Disgruntled factions of dissidents claim a denial of natural justice and denial of procedural fairness-but there is no evidence  to support either claim.  Each claim on closer examination appear to be a “red herring.

Allegations of a denial of procedural fairness and natural justice appear to be designed to distract the club, its members and the authorities from the real core problems in the RSC, corruption and theft. It include  the misappropriation of funds that carry criminal sanctions and outright unauthorised diversion of club property to individuals. If these allegations and the evidence unearthed prove accurate prosecutions are likely to follow.

For the present and on the available evidence there is nothing that would suggest the claims against previous boards are inaccurate.

It appears that the RSC with its serving judges, journalists, doctors, academics, politicians, lawyers and other professionals who have a lot to lose in their reputations or whats left of it now are likely to be the biggest losers in this fight. None though seem too disturbed by the possible consequences of dissident action. A former judge has gone to bat for them along with a lawyer cum politician in an effort to intimidate the current board they wish to topple.

This matter is not over by a long shot yet. There are amongst the fighting factions, retired and serving judges who appear to also be taking sides in what appears to be a parlous game for a power grab at the RSC.

Correspondence passing between at least one former judge, a lawyer, an ‘investigative journalist’ and two members of the interim board suggest the matter is pregnant with conspiracy.

The EGM must proceed and an independent external audit must be conducted to explain  by what authority individuals had siphoned large sums of money to their own personal causes however disguised and padded in their invoices.


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