Where did the money go?

pile of cash and property.

In 2011, it sold its office suites in Megan Avenue in Kuala Lumpur for RM8.54 million and its annual report showed an income of RM4.3 million as “gains from sale of assets”. However, the same accounts showed that about RM4 million was payable to settle a term loan of RM5 million from a commercial bank.

Going through AAM’s annual report, a gradual reduction in fixed deposits can be noticed. In 2011, it had RM8.1 million. This fell to RM7.66 million the following year. In 2013, it dropped steeply to RM4.26 million. Records for the following years are not available.

Members want to know how these monies and members’ annual subscriptions had been spent in just five years until nothing was left to pay salaries.

Insiders are baffled with the financial position of AAM. Besides annual subscriptions, it also earns revenue from sale of merchandise, insurance commissions and contributions from the International Automobile Federation (FIA). It also derives revenue and fees for sanctioning and managing motoring events and races. So, where did the money go? Insiders say the expensive renovations and high cost of salaries, first class air travel and hefty allowances paid to officials have placed AAM in such a situation. “One of the managers of a unit of AAM was paid a salary of RM30,000 – much more than what is paid by some companies,” said a former employee.