PETALING JAYA: The funds provided by the government to Tunku Abdul Rahman University College (TAR UC) through a third party cannot replace a matching grant, says the TARC Education Foundation board of trustees.
In a statement on Thursday (Dec 5), the board of trustees said that the funds coming from such bodies could only be deemed as a "donation".
"The government's matching grant will go through a rigorous funding process under the purview of the Education Ministry.
"The obligation by the Federal Government, in so far as TAR UC matching grant is concerned, is still not fulfilled and should be considered as due and outstanding," the board said.
The board of trustees also noted that there exists a historical and contractual obligation on the part of the Federal Government to honour the matching grant to a maximum of RM60mil per year, adding that the government could provide any kind of funds to any other bodies for the benefit of TAR UC.
On Wednesday (Dec 4), Finance Minister Lim Guan Eng had announced that RM40mil would be allocated to a trust fund managed by TARCian Alumni Association (TAA) for TAR UC.
Guan Eng had initially announced an allocation of at least RM30mil annually for the trust fund for the benefit of TAR UC and its students.
However, for the year 2019, Guan Eng said it would allocate RM40mil.
MCA president Datuk Seri Dr Wee Ka Siong had said that the RM40mil funds were not a direct grant given to TAR UC, adding that it bypasses the university and was given to an NGO (TAA).
Dr Wee had said that the funds should not be construed as the matching grant that the Government had promised to TAR UC.
TAR UC is owned by the TARC Education Foundation, which comes under the Domestic Trade and Consumer Affairs Ministry through the Companies Commission of Malaysia (SSM).