SHAH ALAM, Sept 8 — A state audit released today confirmed former Klang municipal councillor Tee Boon Hock’s culpability in the support letters scandal, while clearing his former boss Ronnie Liu of wrongdoing.

The audit, declassified by the Selangor mentri besar, found that Tee had failed to declare that he was endorsing a company where his son was director.

“This was a clear conflict of interest because he should have declared that his next of kin had a stake in the company” said Tan Sri Khalid Ibrahim.

The internal audit found that Tee had issued 10 letters of recommendations for 20 companies to get contracts from MPK, since 2008.

A total of 16 contracts worth over RM900,000 were offered to these companies, including RM19,924.20 to Perkhidmatan AA where Tee’s son was director.

However, the Selangor mentri besar said Tee was not on MPK’s tender and acquisition board as alleged.

The report also found that the three companies that Tee had endorsed shared the same address.

The former special assistant to Liu was also alleged to have misused the Pandamaran assemblyman and state executive councillor’s letter heads to secure contracts from the municipal council for his

family and cronies.

However, the internal audit could not confirm whether Liu’s signatures used to issue the support letters were forged.

There were, however, letters which were signed on the first-term assemblyman’s behalf.

A total of 16 support letters were issued under Liu’s name with seven contracts worth more than RM700,000 awarded.

Tee was sacked by the DAP disciplinary committee on Aug 1 and from the MPK on Aug 6 in the aftermath of the issue while Liu, who was also implicated in the issuance of letters of support was let off with a severe reprimand from the party.

The audit report made no mention of wrong doing on Liu part.

Khalid also said that investigations against PKR councillor Hamidah Mat Som, who was also accused of endorsing her husband’s company, was still underway.

The audit report found that 19 contract worth more than RM400,000 were obtained by companies which were endorsed by Hamidah.

It included her husband’s company which obtained a contract worth RM104,412 from MPK for work to be carried out between 2009 and 2011.

“She says that she declared her husband interest when she endorsed his company and we are still verifying her claim,” he said.

Khalid said the overall audit report found that letters of support was not the basis of consideration in the selection of contractors and companies to carry out work for MPK.

He said a review of 54 files from the Landscape and Recreation Department and a further 45 files from the Engineering Department found that contacts were awarded based on procedures and pre-determined criteria.