KUALA LUMPUR, Nov 7 — The Public Accounts Committee (PAC) today flagged several mismanagement issues in the National Professors Council (MPN) and advised the government to assess the council’s relevance moving forward.

In a report of its findings released today, the PAC noted that the MPN lacks defined Key Performance Indicators (KPIs) and failed to report its activities to the Prime Minister’s Department (JPM), leading to poor governance and misallocation of funds.

This, the PAC said, has hindered MPN from fulfilling its original objectives.

“The operations of MPN have not been fully monitored by JPM since November 8, 2021, leading to various mismanagement issues within MPN,” PAC chairman Datuk Mas Ermieyati Samsudin said in a statement.

The PAC also pointed out that MPN’s activities have not been reported to JPM, resulting in a lack of oversight.

Other findings by the PAC include:

  • When the Government decided to remove MPN from the oversight of JPM in 2018, MPN amended its Articles of Association in 2019. This amendment removed provisions regarding government representatives on the Board of Trustees (LPA). Even after MPN was reabsorbed under JPM in 2021, MPN continued to use the 2019 amended Articles, despite receiving government funding. This has resulted in the absence of a government representative on the MPN LPA from 2021 onwards, which is seen as a key factor in the lack of government oversight of MPN's operations and finances.
  • Allowances paid to the LPA in 2022 and 2023, amounting to RM207,000 from a government grant of RM7.78 million, were made without the approval of the relevant minister as required by the Companies Commission of Malaysia’s (SSM) guidelines for Limited Liability Companies (CLBG). MPN continued to use the allowance payment procedures established in MPN’s LPA General Meeting No. 2/2015 (dated March 4, 2015) and the 2016 MPN General Assembly, which had been approved by the then Prime Minister.
  • The role of the company secretary has been ineffective, particularly in providing proper advice to the LPA regarding compliance with the current Articles of Association (2019) and in advising the LPA on any decision-making.
  • The companies MPN Global Reach Sdn Bhd and Thinkers Consultancy Sdn Bhd were established to help MPN secure additional revenue. However, an SSM search revealed that MPN does not hold shares in either company. Instead, two LPA members hold shares in both companies. One LPA member, the President/CEO of MPN, claimed not to be aware that he had been named as a shareholder in these companies, which has created a conflict of interest between MPN and the two companies.
  • Both MPN Global Reach and Thinkers Consultancy have been operating and using MPN's premises. MPN has also used its funds to cover the salaries of staff who are also employees of MPN.
  • Following the reabsorption of MPN under JPM in 2021, MPN's Articles of Association were amended in January 2022 and submitted to the Companies Commission of Malaysia (SSM) in early 2024. However, the PAC was not informed about the current status of the amendment.

“JPM should review whether the existence of MPN remains relevant as a driver of academic expertise to assist the government in national development,” said PAC Chairman Datuk Mas Ermieyati Samsudin.She further recommended that MPN be placed under the Higher Education Ministry if it is to continue, given its academic functions.

She also called for clarity on MPN’s status, whether it remains a CLBG under the government or otherwise, in a follow-up meeting.

“MPN must appoint a competent company secretary to ensure effective governance and adhere to relevant laws and regulations,” Mas Ermieyati added.

“Corrective actions must be taken, including obtaining the necessary approval for payments made from the 2022 allocation covering 2018 to 2021.”

The PAC also recommended that JPM establish Standard Operating Procedures for monitoring companies under its oversight to prevent future mismanagement.

The MPN was formed in 2007 as a platform for academics to contribute their expertise to policy-making.

It was disbanded in 2018 when the Pakatan Harapan coalition came to federal power but brought back under the purview of JPM in 2021.