KUALA LUMPUR: National Sports Associations (NSAs) risk losing government funding if they are unwilling to open a separate bank account to facilitate the auditing process, warned Olympic Council of Malaysia (OCM) secretary-general Datuk Nazifuddin Najib.
The new measure, overseen by the Youth and Sports Ministry, aims to provide greater transparency in monitoring the funds allocated to NSAs.
"OCM president Tan Sri Norza Zakaria mentioned that Youth and Sports Minister Hannah Yeoh is reviewing the process of distributing funds to NSAs and the methods for auditing these accounts," said Nazifuddin following the OCM executive council meeting at the Academy Badminton Malaysia in Bukit Kiara today.
"NSAs that choose not to comply with this requirement risk losing financial support, though the final decision will rest with the ministry," he said
Nazifuddin encouraged dialogue between the ministry and NSAs, especially those resistant to the change.
"Some associations may have new board members or treasurers, so I can't comment on their reasons for not wanting to adopt this process," he added.
On Thursday, Hannah Yeoh urged NSAs to improve financial transparency as a condition for continued government funding. She added that the National Sports Council has introduced a new payment system, providing NSAs with a one-time grant on the condition that they maintain a designated bank account for these funds.