AAM suffers another blow

PETALING JAYA: The cash-strapped and controversy-ridden Automobile Association of Malaysia (AAM) has suffered yet another blow – two members of its management committee have resigned in a huff.
Two of the members, theSun learnt had stepped down from the board and two others are expected to follow suit. Their decision was made following the discussions and disclosures made at the Special General Meeting (SGM) last Monday.
Philip Leong and Dr Abdul Malik Yusuf, resigned from their positions last Thursday.
"I have not been consulted over many issues and have been kept in the dark," said Leong, a senior lawyer who is in charge of AAM's legal affairs.
Similarly, Abdul Malik said: "We had very little information on what was happening."
At the SGM called to sanction the sale of its headquarters, the AAM's chairman Tunku Mudzaffar Tunku Mustapha and his deputy Wan Zaharuddin Wan Ahmad reluctantly admitted that the organisation was in the red by RM4.5 million.
They also revealed that RM750,000 received in earnest money for the proposed sale had already been spent and that EPF contributions for the staff had not been made since November last year.
According to the Company Commissions of Malaysia (SSM) records, Leong is also named as the director and a minority shareholder with one share unit in AAM Motorsports Sdn Bhd. It is not immediately known if he has also left the company.
Abdul Malik also indicated that more committee members will be following suit. However, attempts to reach two other committee members – Paul David and Ahmed Ismail Amin – were unsuccessful. Tunku Mudzaffar and Wan Zaharuddin have refused to answer calls or respond to messages left on their mobile phones.
SSM records show that Tunku Mudzaffar and Ahmed Ismail are the directors and shareholders of another AAM subsidiary, AAM Travel Planners Sdn Bhd.
The organisation that was once flourishing as a dynamic motoring association, has been brought down to its knees – unable to pay its staff salaries and suppliers. Records show that it had been recording losses over the years but in 2011 showed a profit of just over RM4 million. However, it has been on the decline since. In the past, it had sold its assets – land and property to keep itself afloat.
The committee had planned to sell its headquarters in Shah Alam for RM7.5 million in a last-ditch attempt to bail itself from mounting financial woes. However, the move was opposed by members.
theSun in its report on Sept 27, revealed that AAM had received 10% upfront amounting to RM750,000 from a potential buyer. Members charged that the price was below the market price.
Documents seen by theSun revealed that AAM had entered into an agreement to sell the property on May 3. It appointed Architectonic Design on May 9, as its "marketing agent".
This arrangement, too, is shrouded in a cloud of darkness as the Board of Valuers, Appraisers and Estate Agents Malaysia which is under the auspices of the Finance Ministry, has confirmed that that the company and its architect are not registered estate agents.