Lions Club - Misappropriation of funds- Proof

To see the photo clearly, click on the photo and then click 'original size'

The above two statements in 2012 apparently were what was presented at the AGM. I won't know if it was actually presented as I was not a member. Apparently according to Marcia Hong they had convinced Bukit Aman police that this was presented at the AGM (if that was true) and as such there was no misappropriation of funds.

To me, this leaves a lot of questions to be answered.

1. If the 3 extra accounts were presented to everyone of the members then why did none of the members respond to my email asking if there were other bank accounts other than the two presented to the BOD in 2015/2016 when I was director?

2. Why did Horace Ho Toh Chee reply in writing to my email to him asking how many bank accounts he was given for audit during an earlier year when he did the audit that he was only given 2 bank accounts?

3. Who audited the 3 extra secret bank accounts in all the years leading to 2015/2016? Were they 
     ever audited?

Let us study the statement itself and see what it portrays.

a. This account is two of the 3 accounts that most members, past presidents and I were not aware of.
b. The accounts are one each in Hong Leong Bank and Alliance Bank.
c.  Money was transferred from Hong Leong Bank account to:
i.  Special purpose account RM 6,000 (In Alliance Bank)
ii. Club House Renovation RM 8,000 (Paid directly from HLB)
iii. Cleaning and transport  RM    697 (Paid Directly from HLB)
iv) Air conditioners were purchased by payment from Alliance Bank with the RM6000
     transferred from HLB + an additional RM460.

These are all administrative expenses (purchase of air conditioners and renovation of club house, cleaning and transport) that are strictly prohibited by the LCI Constitution and By- Laws.

Is the above not misappropriation of funds meant for projects; meant for the needy?

The statement was signed by Joseph Chai and John SF Ho. There are a further 2 names viz. that of CCPung and Tan Sing Ben.

Now, as a trained Audit Senior the first question that will come to my mind is:

i) Is this statement true just because it is signed by the treasurer and chairman.
ii)What could go wrong?
iii)What could be hidden from the members, if this had been presented to them that is?

Let me put it to you. What if  RM10,000 had been donated by some good soul and that money had been removed from the account?

a) How will the members determine that money was not siphoned out if the bank accounts were not audited?
b) How will the police know that there was no misappropriation of funds if the books and bank statements were not checked? 

If the debit and credit are both removed how will anyone know if the statements are showing a true and fair view?

Please study the statement and ponder over the possibilities.

Funds have definitely been misappropriated from this account according to the Constitution and by-laws of the Lions Clubs International and the 'Officers Manual' which all officers are given upon induction.

What else is amiss?

There are many points to look at from the Societies Act that have not been complied with but let us just see those that are connected with the statement above.
 

14 (1) Every registered society shall, within 60days after the holding of its AGM or if no AGM is held, within 60 days after the end of each calendar year forward to the Registrar –

a….c

(d) the accounts of the last financial year of the society together with a balance sheet showing the financial position at the close of the last financial year of the society.

(da)

(db) the description of any money or property, any pecuniary benefit or advantage received by the society from any person ordinarily resident outside Malaysia or an organization, authority, government, or agency of any government, outside Malaysia

14 (2) (d)  duly audited account

i) Would any of the balance sheet provided to ROS be accurate? Of course not, as:
    a) the balance in the 3 bank accounts were not shown as an asset for many years.
    b) the fixed deposit account balance was not disclosed
    c) the office lot was not shown in the balance sheet supplied in the many years since 

                  the building was bought
              d) the fixed assets including the air conditioners bought as shown in the statement above

        were not disclosed in the accounts.
ii) If the bank accounts were never disclosed to ROS then what about monies received from Japan and Korea as stated at the top of the statement? That would be against 14 (db) above won't it? Would it be wrong to suspect money laundering?

iii) How many years audited accounts are going to be demanded by ROS? Can ROS go back to the time of purchase of the Office premises? 

    
Do I really want to list down all the matters not complied with regards to Societies Act? This is simply taking too much of my valuable time.

Any additional mystery?

Yes, Please note that the bank account in Hong Leong Bank is in the name Lions Club of Kota Kinabalu whilst that of the name of the club in Alliance Bank is Lions Club of Kota Kinabalu (Host).

Won't we all want to know how a club that had it's name as Lions Club of Kota Kinabalu open an account in a bank under the name of Lions Club of Kota Kinabalu (Host)?