According to The Star, who quoted an unnamed AAM official, the country’s premier motoring authority, has not only failed to pay its employees for months but has to deal with members who are demanding for refunds of annual fees paid.
The official also revealed that services offered by the body had been crippled as there was no one to attend to calls at any of its 16 breakdown centres.
“This is because the unpaid staff have not turned up for work,” the daily quoted him as saying, adding that about 100 employees however still turned up regularly in the hope that they would be paid.
AAM, the official explained, now helps stranded motorists by redirecting requests for assistance.
He said AAM was looking to sell off its building in Shah Alam for RM7.5 million as part of its plan to recoup its losses.
“We heard that a 10 per cent booking fee has already been paid for the building.”
He also said that despite the bleak outlook, there were still motorists who signed-up or renewed their insurance policies and membership fees.
In a report by FMT last month, AAM Chairman Tunku Mudzaffar Tunku Mustapha gave his assurance that the four months’ salary due to its 300 staff would be settled. He said this after disgruntled employees picketed outside the AAM office.
It was also alleged the company had failed to fulfil their staff’s Employees Provident Fund (EPF) contributions for close to a year.
Speaking to the media however, Tunku Mudzaffar denied the allegation of AAM’s so-called financial crisis and speculation that the association may close shop.
“Only we (AAM) know what is happening,” he was quoted as saying.
Meanwhile when contacted, Tunku Mudzaffar refused to comment on the matter.
He told FMT that if and when AAM decides to comment it will issue a statement.
“This is a very personal matter,” he said. “It is not that we don’t want to pay our staff or anything like that. We will not comment on this issue.”
Formed in 1932 AAM has over 100,000 members who pay between RM75 and RM125 annually for auto services, that include 24-hour emergency breakdowns and roadside assistance.