The report stated that the collection of RM50.74 million in student fees by “unauthorised entity” Koperasi B-5-1788, for the university’s master of education (SPEND) and postgraduate diploma in education (DPLI) programmes was deemed invalid.
“The collaboration agreement (signed on June 15, 2023 between UKM and the cooperative) for SPEND and DPLI was invalid, as they did not obtain approval from the finance minister, as required under the UKM constitution,” the report said.
It also said that the agreement was only approved at the university management meeting level and signed by a former vice-chancellor of UKM, who did not have the authority under the constitution to approve such agreements.
The report also found that fee revenue amounting to RM32.36 million was not fully accounted for.
It said that the amount remitted to the cooperative, including RM0.87 million received by UKM via EPF and the National Higher Education Fund Corporation, was not recorded as revenue for UKM.
The figures were based on financial statements for the year ended Dec 31, 2024.
“Student fees for 2024 (collected by the cooperative) totalling RM21.02 million were submitted late to UKM, with delays ranging from 31 to 291 days,” the report added.
It also noted that fees collected by Koperasi B-5-1788 amounting to RM5.32 million had not yet been remitted to UKM as of the end of 2024, with delays ranging from one to over three years.
According to the university’s financial and accounting system (UFASt), total student fee revenue for 2024 amounted to RM188.21 million, including RM28.41 million collected through Koperasi B-5-1788.
“Conflicts of interest existed in the management of the SPEND and DPLI programmes, where five UKM officers also held key positions in Koperasi B-5-1788, including chairman, secretary, treasurer, and board members,” the report said.
UKM’s response
The report recorded UKM’s response, acknowledging that its constitution had no provision allowing it to appoint Koperasi B-5-1788 to collect student fees on the university’s behalf.
“An investigation is currently underway into the party that granted Koperasi B-5-1788 the authority to collect student fees for SPEND and DPLI,” UKM said, adding that it had taken over the entire student intake and fee collection process for the programmes for the 2025/2026 session.
The university said that Koperasi B-5-1788 would continue overseeing DPLI Cohort 6 and prior, as well as SPEND Cohort 9 and earlier, until the board of directors decides on the future course of the collaboration agreement.
UKM also noted that a proposal was underway to terminate the contract with Koperasi B-5-1788, originally set to expire in 2027.
On the RM32.36 million that was not fully accounted for, UKM said it made revenue adjustments to recognise the amounts that should have been received: RM2.27 million for SPEND and RM30.09 million for DPLI for 2024.
The university also said that as of Jan 14, 2026, it had collected from the cooperative RM76,010 for SPEND and RM1.75 million for DPLI, of the RM5.32 million that wasn’t remitted in 2024.
Conflicts of interest
The university acknowledged the conflicts of interest and said it had conducted a due diligence exercise regarding members of the cooperative’s board who were also UKM staff.
It said it also took action by implementing internal transfers of the officers involved in November 2025. The officers were reassigned to low-risk positions unrelated to the operations of Koperasi B-5-1788.
Unauthorised credit card use
The report said audits found that UKMShape’s corporate credit cards were used without authorisation from the university’s finance committee for a total of RM107,907 covering airline tickets, hotels, and other overseas expenses for six ineligible individuals.
UKMShape refers to the university’s Centre for Advanced and Professional Education.
UKM said its internal audit unit had submitted a report on the unauthorised credit card use to the university’s Integrity and Ombudsman Centre for further investigation.