KUALA LUMPUR – Internal politics within the SME Association of Malaysia (SME Malaysia) has taken a dramatic turn, with its deposed president alleging that some office bearers are in cahoots to cover up “suspicious” financial dealings.
Former national president Ding Hong Sing, who was voted out during an extraordinary general meeting (EGM) on April 23, named several high-ranking council members who took part in the alleged “personally motivated” move to remove him from his post.
Ding added that the supposed coup was put into gear in January when he refused to sign the association’s 2023 financial account – leading to displeased council members pushing for his removal to “take control” of the leadership council.
This would allow them to pass the account during the association’s annual general meeting (AGM).
Scoop is withholding the names of council members mentioned by Ding, pending investigations by authorities.
“(After my removal as president during the EGM), I recalled the chronological events in the past months and noticed that they were urgently trying to force me to sign the accounts,” Ding said during a press conference in Puchong today.
“The move to kick me out of the association came quickly…after the internal auditor started questioning one of the persons in charge of a project (who was) directly involved in the expenditure transactions and the direct negotiation of a vendor appointment against (the association’s) constitution.”
Ding claimed that he refused to sign off on the accounts due to the association’s 2021 to 2023 financial accounts’ ostensible non-compliance with its approval process, including a lack of inspection by an appointed internal auditor.
“I received advice from the Registrar of Societies (RoS) to duly comply with the association’s constitution, (especially since) an internal auditor was not engaged for the past three years and we have only registered one internal auditor in the RoS system when we need two.
“(A council member) told me that if I have concerns regarding the accounts and refuse to sign them, they can always appoint another person to sign the documents.
“I responded (by saying) this is non-compliance and insisted on reading the internal audit before signing the external auditor account as I want to be fully responsible.”
During the April 23 EGM meeting, believed to have been called to address allegations regarding Ding’s conduct, 128 members voted in favour of a motion to oust him, six voted against the move and 12 abstained.
According to an internal letter shared with the press today, he was accused of several misdemeanours.
This includes harming the association’s reputation by holding an “unauthorised and self-declared” press conference on April 5 – during which he supposedly divulged “highly confidential and sensitive” information on the association’s financials.
Ding today reiterated that while his stance denying the allegations remains the same, the council had also failed to adhere to due processes in considering disciplinary action against him.
“According to the association’s constitution, as part of the disciplinary process, the disciplinary committee acts on behalf of the council to investigate members. Following this, a report will have to be presented to the council to determine its next course of action.
“I have checked through the (council meetings’) minutes numerous times. There were no such discussions within the council.”
Alleging that SME Malaysia risks facing a non-compliance penalty from the Registrar of Societies (RoS) due to the actions of the council members in question, Ding alluded to the possibility of “interesting accounting” being a factor in their decision-making process.
“I have made police reports and lodged complaints to RoS about the unethical expulsion of my company’s membership and my position as president through the manipulation of invalid disciplinary processes and an invalid EGM.
“I have also urged RoS to investigate the validity of (SME Malaysia) members who attended the EGM and the legitimacy of the EGM itself. Regarding the accounting, I shall leave it to RoS to investigate.”
He added that he reserves his rights to report issues involving the association to the Malaysian Anti-Corruption Commission and haul intended persons behind the furore to court for slandering his personal and business reputation.
Ding had previously told Scoop that the EGM and his removal should be rendered invalid due to how the gathering – called by SME Malaysia national secretary-general Chin Chee Seong – failed to follow due processes outlined in its constitution.
Asserting that he has no intention to contest in the upcoming AGM, Ding also stressed that he will not compromise on compliance with the association’s constitution, reminding elected council members that association members have entrusted them with certain responsibilities. – April 26, 2024