Chairman and members linked to SR4.22m asset disputeJEDDAH/AL-QUNFUDAH – Administrative and control agencies have started probing alleged financial irregularities committed by a charitable society headquartered in one of Makkah's governorates. Preliminary investigations show that the society has violated the rules of the Ministry of Social Affairs which define the functions of charitable societies. It is alleged the society spent huge sums of money without official receipts. Investigations reveal that the society's chairman and members have refused to transfer an amount of SR4.22 million, representing fixed assets of the society's charitable depot, into the society's name. The report further said the chairman and members refused to transfer the ownership of other assets. In addition, they refused to reveal the whereabouts of assets of the society outside the governorate. According to copies of the reports obtained by Okaz, the salaries of housemaids and drivers working for the chairman and members are being paid from the budget of the society. The initial auditing also shows that financial aid was paid from the society's account to people outside the governorate, including an amount of SR1 million as an emergency aid. This took place without field research, which is a requirement for deciding such payments. An investigation being carried out by a high level committee also found that the society previously paid for travel allowances and incentives without any official documentation. There has also not been a required separation between petty cash and allocations for activities. This is being seen as conclusive evidence of irregularities in the society's accounts. An official source told Okaz that the Administrative Intelligence has received the case file and will launch an investigation into the alleged irregularities. An official source at the chartered accountant's office, who has been assigned by the Ministry of Social Affairs to audit the society's accounts, said a report submitted by the chartered accountant shows that 20 out of 33 items in the report are considered violations. In a telephone conversation with Okaz, the source said: “The chartered accountant tried several times to correct these irregularities in the accounts with the authorities concerned at the society, but the insistence of some of the society's members to not abide properly by the rules, aggravated the problem.” Another official said: “The role of the chartered accountant's office has nothing to do with handling problems. It serves as a supervisory body that audits the accounts and revises the financial statements. It lists and submits reports to the authorities assigned to look after the society's accountants, which is the Ministry of Social Affairs. One of the alleged financial irregularities discovered by the chartered accountant is that an amount of SR21,320 was paid as clothing allowance for certain beneficiaries without being signed by the responsible officials. During a telephone conversation, the society's director asked Okaz not to publish the report. He claimed that the violations were not verified by a neutral body, adding that the entire file is on the desk of the governor. Before Okaz went to print, the society's director rushed into the newspaper's office and asked the reporter not to quote him in any way.
