Curi Curi Royal Selangor Club

Revelations that the interim president (though not alone in this move) quite rightly feared exposure, of not only corrupt accounting and financial malpractices within the Sport Club, but more importantly, exposure to the uses to which much of the money misappropriated was applied, appears to stand up”.

ONE FOR THE ROAD

Further to what’s already been written on the on-going saga, the crisis of confidence at the Royal Selangor Club (RSC), volunteered information continues to flow in thick and fast suggesting possible reasons as to why the Club’s legitimately elected president and his board were recently displaced.

The board room coup was conducted in what can only be described as a desperate, unlawful and invalid EGM called earlier this year for just one purpose. 

It appears from the precedent created by the president’s removal, that anyone with the requisite numbers of 150 out of 9,500 members can now call an EGM at any time and depose a board without a valid reason presented in the appropriate form. A precedent for such ‘coups’ has now been established.

Information flowing in freely from within and outside the RSC provides greater clarity for the reasons why such extreme measures were taken by a group within the RSC to muzzle and displace an elected board of directors. By their actions they prevented the ousted board from tabling a damaging interim audit report on the state of the Clubs finances.

It is now clear the displaced board in possession of damaging information was about to table an embarrassing interim summary of an audit of the Club’s finances, showing clearly how decrepit it’s accounting procedures and systems had become. They are dangerously dated and deficient. Previous managers of the Club and its board had clearly been complicit in criminal conduct over the years unchecked.

The audit summary sans the information from the Sports Club contains some disturbing revelations pointing to wide spread actionable criminality and a dysfunctional financial system devoid of financial controls, oversight or responsible management at the RSC.

To make matters worse the problem from the records appears to span at least a decade unchecked. In short criminality and fraud within the RSC had been ‘swept under the carpet’ not to put too fine a point to the problem.

In a recent article on financial mismanagement at the RSC a number of critical lapses and financial misconduct in the RSC were identified. These were extracted from an audit summary produced by auditors earlier this year. It appears that these lapses and mismanagement of finances had been allowed to fester like an open sore without sanction. They include:

a) skimming of the takings from poker machines (gaming machines)

b) incomplete and misleading financial records, inaccurate misleading bank reconciliation ( an indication of fraudulent accounting and financial transactions- not explained)

c) pilferage of goods including alcoholic beverages and cigarettes from the Clubs inventory channelled elsewhere to the benefit of member’s private businesses

d) bad debts in breach of the clubs lending and trade accounts policies- pointing to private undisclosed ‘deals’ -with private suppliers and members in breach of tendering procedures totalling over $2,000,000.

e) unsecured loans to members of the RSC in breach of the clubs constitution and rules, unverifiable ‘expenses and costs’ by the Sports section of the RSC over a period involving previous boards going back as far as 2003 amounting to several millions of dollars.

f) Failure to comply with the open tender processes for goods, services and other supplies to the Club

g) Fictitious bloated assets of the club in creative accounting amounting to at least $1,275,789 ( at least twice the amount if audits of the sports club were to be properly  and independently conducted). Club president (acting) denied auditors access to the clubs books of account.

WHY AUDIT THAT EXTRA DRINK? BE A SPORT

“The interim president of the Club appointed by a registrar of the High Court on highly questionable grounds is said to have locked out the auditors from a critical section of the financially troubled RSC, the Sports Club.

In locking out the auditors, the interim president unlawfully intervened, preventing the auditors from carrying out their lawful duties in auditing the Sports Clubs accounts. That the auditors were prevented from completing an audit into one of the most contentious, financially costly and irresponsibly managed sections of the RSC’s finances is notable for a number of reasons. With his chequered past in public finance the interim president’s actions raise more questions than it provides answers.

Revelations that the interim president- though not acting alone- quite rightly feared exposure of not only corrupt accounting and financial malpractices within the Sport Club, but more importantly exposure to the uses to which much of the money misappropriated was applied appears to stand up.

The evidence points to quite explosive and improper purposes to which the money was put.

The use of the expenses account is widely believed to be but one of the key reasons the interim president pressed the panic button and intervened in the audit locking out the auditors. Widespread fraud and skimming of the RSC’s finances remains unchecked. 

The Sports Club of the RSC had accumulated over the years a significantly large expenses liability which lacks specificity as required by proper accounting standards. These ‘expenses’ were never quantified or detailed in conformity with accepted accounting practices. They were conveniently instead lumped together as ‘sundry’ items. A reason for the lock out?

WHY THE AUDITORS WERE LOCKED OUT-WOMEN OF THE NIGHT KEEP SOUVENIRS

Expenses booked to the Sports Club’s accounts having grown disproportionately over time include expenses for certain ‘services’ provided to members and claimed by them without  detailing what those ‘expenses’ related to according to an inside source.  

These ‘expenses’ it is now confirmed include services rendered by massage parlours, call girls and escorts to members, but billed as  miscellaneous or ‘sundry’ items. There is more.

The deliberate misclassification of these services as ‘sundry items’ has been a very poor, and shoddy attempt to cover up unlawful and improper extra-curricular activities of some members of the Sports Club, designed to mislead auditors, members and the income tax office.

It is now evident that under-aged prostitutes may have been procured by members of the Sports Club (when abroad) and charged to the RSC’s accounts as a general ‘sundry’ expense.  

A Business insider report by Reuters not long ago quoted Australian detectives who investigate pedophiles in the region saying they believe Malaysia has become one of Southeast Asia’s biggest centers for the transmission of child sex abuse and pornography.

At least one person, a woman calling herself ‘Sharyn’ (likely a pseudonym) admitting to being an escort, has spoken to investigators in confidence, confirming the supply of her ‘services’ to patrons of the Sports Club (Soccer and Golf). She willingly produced a set of photographs of what looked like members of a  sports team posing with her and the other women which she says was taken with members of the Club in KL after a match.

IRREPARABLE DAMAGE-THIEVES CHARLATANS JOHNS AND GAMBLERS

“And as far as the Club’s finances are concerned, this same group are accused of treating the Club as their own private piggy bank to raid at will.”

An RSC member who wishes to remain anonymous says that even if a single allegation contained in this article is correct, then the reputational damage to the Club by these fallen  angel ‘pillars’ of society is irreversible.  Yet the core group at the heart of this malaise and the administrative dysfunction at the RSC now appear to be in control of its interim board.

It is gradually beginning to unravel from interviews with RSC members that the plunder of the Club’s finances is not only endemic but systemic as well. The core group of offenders understandably defensive about the prospect of any independent external scrutiny of its activities and its accounts have resorted to threats against anyone supplying information to the investigation into the RSC’s finances.

Many members have long complained previously and in vain about the lack of transparency, oversight of the clubs finances and in particular about a coterie of individuals (lawyers, journalist, doctors and judges) who seem to influence election outcomes and the management of the Club as if it were a private fiefdom of theirs. And as far as the Club’s finances are concerned, this same group are accused of treating the Club as their own private piggy bank to raid at will.

Outrageously generous payments to lawyers for “advice” and “consultation” over the years have also been a particularly popular source of the feeding frenzy that has dogged the RSL as it has the Lake Gardens Club over the years.

The use of the Club’s premises and its membership as an off course book making centre for fixing soccer matches is another activity that has become legend amongst certain members of the RSC. The RSC provides the perfect cover for such activities, its reputation as a premier, exclusive, high society Club being a shield from scrutiny.

Till a full external and independent audit is conducted into the affairs of this icon of Malaysia’s glorious history, a member says the stain of corruption and the suspicion of impropriety will linger like a bad smell over the RSC for years to come.  

More to come.

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Comments
4 Responses to “Curi Curi Royal Selangor Club”
  1. IT.Scheiss says:

    I wonder what will happen when the SHFT re RSC if this becomes a police case or goes to court, civil or otherwise?

    Meanwhile:-

    Free Malaysia Today carries a Bernama report.

    Cochin-bound AirAsia plane turns back after technical issues
    Bernama | July 22, 2017

    PUTRAJAYA: The AirAsia flight AK37 bound for Cochin from Kuala Lumpur today returned to the Kuala Lumpur International Airport (klia2) due to technical reasons, said AirAsia in a statement here.

    It said the flight left for India at 6.25am, and the aircraft landed safely at klia2 two hours into the flight.

    Without elaborating further, AirAsia said the flight was re-scheduled for 3.45pm Saturday.

    “All guests are being attended to by AirAsia. We sincerely apologise for any inconvenience caused,” the statement said.

    http://www.freemalaysiatoday.com/category/nation/2017/07/22/cochin-bound-airasia-plane-u-turns-after-technical-issues/

    Aviation Herald has not picked up on it yet.

    http://avherald.com/

    Like

    • grkumar says:

      First things first and dealing with each of your points in turn: The RSC matter is the subject of a brief going to the MACC. The initial draft and all of the attendant evidence to support caused us to bring the problem up again. We refrained from the mention of names or getting personal. But it will eventually see the light of day in its full form.

      The audacity of that part of the membership of this organization to steal and to pilfer wholesale whilst spewing anti corruption rhetoric from the other side of their mouths is only matched by the extent of the crimes of those involved. And they are not mere rank and file.

      Getting now to the most recent Air Asia incident, all one can say is let the brave fly that airline. Let those with little self respect or value for their lives and safety stick to Air Asia for the few dollars they spend for that death defying experience.

      The Rolls Royce engine at the heart of the Air Asia fleet (Trent 7?) is prone to failure if not maintained well.

      With the number of accidents and near accidents (in engine failure events) reported in the 7th month of this year alone, statistically we are witness to a cost cutting Airline playing Russian roulette with the lives of its passengers.

      The PR stunts of Air Asia are drawn from the entertainment industry but applied to something completely different.

      Someone somewhere thinks this is all a bit of fun.

      Like

  2. IT.Scheiss says:

    It is rather disgusting that such a “prestigious” exclusive club has descended to such depths.

    Anyway, with regards that AirAsia flight to Cochin, The Malaysian Insight reports:-

    “AirAsia flight to Cochin aborted due to suspected engine trouble”

    “AIRASIA flight AK0037 which left for Cochin, India, today was forced to turn back because of suspected engine trouble.

    “The flight left for India at 6.25am, and returned to KLIA2 after more than two hours into the flight according to the flight-tracking website flightradar24.com.

    “According to the website, the plane flew for about 1,000km, passing Banda Acheh, Indonesia, before turning back to KLIA2.”

    https://www.themalaysianinsight.com/s/8277/

    The only difference here is that the plane involved is an Airbus A320 which is powered by CFM International CFM86 engines. CFM International is a General Electric (US) and Saffran (France) joint venture

    This is the same engine type on a Malindo Air Boeing 737-900 which suffered a cracked Accessory Gearbox casing on 25 June, which forced it to divert and land in Delhi, according to The Aviation Herald.

    “A Malindo Air Boeing 737-900, registration 9M-LNF performing flight OD-132 from Lahore (Pakistan) to Kuala Lumpur (Malaysia) with 75 passengers, was enroute at FL350 about 150nm southeast of Delhi (India) when the right hand engine (CFM56) failed and seized prompting the crew to shut the engine down, turn around and divert to Delhi, where the aircraft landed safely on runway 10 about 40 minutes later.”

    “A postflight inspection revealed the Accessory Gear Box had fractured causing a tear and a crack of the gear box casing as well as low engine oil pressure and seizing the engine.”

    http://avherald.com/h?article=4aad5c8d&opt=0

    The Aviation Herald has not reported on this recent incident with AirAsia 37, possibly due to their specific reporting policy “We are interested only in first hand reports (e.g. passenger reports, witness reports, reports from listeners on ATC frequencies, …)”

    http://avherald.com/h?contact=&opt=0

    However, no other Malaysian media besides The Malaysian Insight has mentioned suspected engine trouble based upon a report on Flightradar24.com .

    Like

    • grkumar says:

      Aaaaah it is more than disgusting. The registrar who heard the matter is a friend of a lawyer acting in this matter (Bersih) and a retired judge who went before her. Observations of the relationships between court operatives especially those at the lower level and the ‘senior’ levels of the profession was documented by a researcher from Australia researching the nexus between justice as an outcome and the relationship between lawyers and judges. A very interesting topic a very interesting scam.

      We will continue to push this one because it forms part of a brief to the MACC. This is not something for the pages of ‘fish and chips’ wrap writers who claim the moral high ground as ‘investigative reporters’ and anti corruption fighters. There is more to come. Thank you for the information on the Cochin flight (Air Asia). We called them and they said the person who could respond was not in. 4 attempts.

      Like

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