KOTA BAHARU, June 15 (Bernama) -- Procuring dinar and dirham without agreements and handing them over before payment was received were among the weaknesses found in the management and financial management of Kelantan Gold Trade Sdn Bhd (KGT), according to the Auditor-General's Report 2014 Series 2.
Other weaknesses detected in KGT were buyback made without procedures and controls and the dinar and dirham did not have certificates of authenticity, while marketing agents did not sign and comply with the terms of the agreements.
The dinar and dirham stock management was also less than satisfactory, and there were no letters of appointment for the chief executive officer, consultant, director and executive director of the company, while assets were not used to generate income for the company, according to the AG's Report which was tabled to the Dewan Rakyat on Monday.
The AG found that KGT's financial performance was less than satisfactory as it recorded net losses of RM20,000 in 2012 and RM630,000 in 2013.
The audit, carried out in August and October 2014, found that although corporate governance of KGT, a subsidiary of the Kelantan Menteri Besar Incorporated was satisfactory, there were weaknesses in its management and financial management.
The AG recommended measures to overcome KGT's weaknesses, including conducting a review on the use of dinar and dirham as the Kelantan Syariah currency in Kelantan, in particular, and Malaysia, in general, in order to achieve the objectives of its formation.
KGT was set up in 2008 with the aim of implementing the Kelantan government's aspiration to be the pioneer in the use of dinar (gold) and dirham (silver) as the first Muamalat system in Malaysia.
-- BERNAMA
Other weaknesses detected in KGT were buyback made without procedures and controls and the dinar and dirham did not have certificates of authenticity, while marketing agents did not sign and comply with the terms of the agreements.
The dinar and dirham stock management was also less than satisfactory, and there were no letters of appointment for the chief executive officer, consultant, director and executive director of the company, while assets were not used to generate income for the company, according to the AG's Report which was tabled to the Dewan Rakyat on Monday.
The AG found that KGT's financial performance was less than satisfactory as it recorded net losses of RM20,000 in 2012 and RM630,000 in 2013.
The audit, carried out in August and October 2014, found that although corporate governance of KGT, a subsidiary of the Kelantan Menteri Besar Incorporated was satisfactory, there were weaknesses in its management and financial management.
The AG recommended measures to overcome KGT's weaknesses, including conducting a review on the use of dinar and dirham as the Kelantan Syariah currency in Kelantan, in particular, and Malaysia, in general, in order to achieve the objectives of its formation.
KGT was set up in 2008 with the aim of implementing the Kelantan government's aspiration to be the pioneer in the use of dinar (gold) and dirham (silver) as the first Muamalat system in Malaysia.
-- BERNAMA
