Tommy Thomas Will Resign

THE SINS OF THE RSC

The below is the second installment of the audit of the Royal Selangor Club which we committed to placing on the public record.

Read in conjunction with the first part of the audit published on this blog last week, it becomes obvious why Tommy Thomas, Ambiga Srinivasan and their colleagues at the RCS have acted in the way they have by criminally attempting to cover up the audit by locking out the auditor and threatening anyone who leaked it with consequences.

What Thomas does not realize that to cover up information and knowledge of the commision of a criminal offence as that which has occurred under his watch is itself a criminal offence. The further offence  of attempting to interfere with a judge or judges and  attempting to influence the outcome of a hearing is an indictable offence punishable by a term of jail and loss of his practising certificate. But this is the Malaysian Bar, its legal system and the Mahathir government.

MUST BE OF UNIMPEACHABLE UNBLEMISHED CHARACTER

The holder of the office Attorney General must be a person of unimpeachable character both personal and professional which is the principle requirement. It is not the case with Thomas. Where there is even the slightest  doubt or question about the integrity of the person holding that office, the convention demands he step aside till the allegations have been thoroughly investigated by an impartial and external investigator who will publish his findings and reasons for his findings on the allegation.

Th office of Attorney General is not the property of government or the prime minister Mahathir or anyone else. It is a public office should always be open to scrutiny at the highest levels.

A PRISONER OF MAHATHIR

Tommy Thomas has little choice as he is  a prisoner of a highly experienced and wily politician in Dr. Mahathir. But what transpired in 2017 at the RSC cannot be expunged or purges till Thomas and his colleagues are thoroughly investigated. We won’t relent because there is far too much in evidence to ignore about the RSC crimes.

Of late he has failed to rein in the prime minister and his racist and anti semitic comments. Thats another story and evidence of his partiality in office. 

PART 2 OFF THE RSC AUDIT

Executive Summary of audit of Sports Sections’ Accounting  System

  1. 2016 Sports Sections not audited

We were unable to audit the individual Sports Section as Mr. Alex D’Silva ordered the Internal Audit to be out of their working room at the Club and not to be provided any working office in the Club on grounds that the IA’s operations does not comply with the constitution of the Club. From our limited review of several sections which were stopped half way, we have identified numerous weaknesses in the Sections’ accounts in 2016. We recommend that the members of the Club make a decision at the forthcoming AGM to instruct the GC that internal audit of 2016 accounts be carried out without fail.

  1. Sports Section does not have a separate GL system

Clause 11 of the Sports Bye Laws requires that each Section shall maintain records of all collections and expenditure. Clause 12 requires that each section shall also maintain a book to record and manage its assets.

On the contrary, what we noted is that the Sections share the same General Ledger with the Club. Much inefficient time is being spent to correct errors made in the accounting entries of the ..Sections which are posted into the same GL as the Club. The GL of the Club is cluttered with Section’s accounting entries in many captions. We recommend that with effect from 1 January 2017:

  • Section accounting entries be transferred into a separate GL maintained solely for Sections.
  • Separate payment vouchers be used for Sections
  1. Bank balances of individual Sports Sections are NOT specifically identifiable or verifiable.

Cash balance disclosed in the Annual Report of individual Sections cannot be verified or specifically identified. The funds have not been specifically set aside. The causes of this are as follows:

  1. A system of maintaining one separate bank account for Sections were not practiced.
  2. Receipts and payments account not prepared for any sections.

We recommend that the accounts of the Sections be reviewed for that past couple of years to exclude items not involving the movement of funds eg. treatment of discounts or free beverages given by the Club, as income of the Section. Once this exercise is completed, the Club should transfer the net amount due to all the Sections into a separate bank account. The net amount due to the Sections should tie exactly to this bank balance on a monthly basis. Also the Club should assist Sections with excess funds to place their funds in fixed deposits.

  1. Inappropriate disclosure of amount due to Sections as “Accumulated Funds” instead of “Amount due to Sections”, in the audited accounts of the Club

Currently the amount due to Sections are shown in the audited accounts of the Club as Sports Section Funds. The audited balance sheet of the Club also states “Financed by: Accumulated Fund & Sports Section Fund” when the Club is not financed by the Sports Sections.

We recommend that in order to improve the controls, the following be adopted:

  • Once reconciled as stated in point (3) above, the accumulated fund should be disclosed as “amount due to Sections” and in the books of the Sections as “amount due from the Club”.
  • The amount in (i) above should be exactly represented by cash in a separate bank account maintained by the Club.
  • The month end balance in the POS statement of account (or ledger) issued by the Club should tie exactly to (i) and (ii) above.
  • All Section payments should be made using this particular bank account, the signatory for which should be the Sports Chairman and Finance Manager.
  1. Inventory not accounted for

The financial statements of individual Sections does not contain inventory in hand. We recommend that the inventory be included into the accounts as at 31 Dec 2016 and properly maintained from thereon.

  1. Discrepancy in charging the Sections beverages at cost price

We understand from the Sports Section Executive that it is common for the Club

to charge beverages to the Sections at cost price. However we were unable to obtain any satisfactory explanation to the following:

 

In the books of the Section:    
Revenue:

Subsidy given to Section

616.20 Being 1 barrel of beer, given to Section at cost price by the Club.
Expenditure:

lbarrel of beer charged to Section at full price

753.39 Club’s actual selling price is charged to the P&L of the Section
Net cost to the Section 137.19 The end result is that the Section has incurred only RM137.19 for a barrel of beer whilst the Club has incurred RM479.01 for providing a barrel of beer, supposedly at cost price (616.20 —137.19 = 479.01).

The Club’s actual cost should be NIL.

 

  • We recommend that above be clarified with the GC and the correct intention be put into practice.
  • Any form of assistance given by the Club to the section should not be taken as income in the books of the Section unless it relates to cash
  1. GST not applicable for sports section

We understand from the discussions with Customs officers that GST is not applicable to Sports Sections. We recommend that the Club write to the Customs to clarify the matter and once reconfirmed, discontinue the charging of GST in Section transactions, in particular the monthly subscriptions and all expenses incurred by the Sections in the Club.

Prepared by:

J Revi Pillai

Chairman,

Internal Audit Committee RSC

Reviewed by:

Vijayan Doraisamy,

Member Internal Audit Committee

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Comments
2 Responses to “Tommy Thomas Will Resign”
  1. Seeker says:

    Tommy Thomas cannot resign. He is being held hostage to deliver the goods to Mahathir. He is a slave of Mahathir now.

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