CMI Update
Edited by Murray Hunter
The Chartered Management Institute which claims to be the pinnacle of British management and business leadership appears to be suffering a financial crisis due to the mismanagement of its activities in Malaysia which is beginning to hit their business model and the finances of the UK charity.
Following revelations in FMT that they are under investigation by MOHE for selling certificates not accredited by MQA in Malaysia. This investigation appears to be ongoing.
On the CMI website, updates and reports on their own website about their activities in Asia including the visit in 2023 of their CEO Ann Francke to Malaysia have been restricted.
The Chair of the CMI Malaysia Regional Board Major (R) Dr. Prebagaran Jayaraman was replaced without explanation or the normal testimonial of thanks after only 9 months of the normal 2 year tenure. Dr Prebagaran Jayaraman was just elected on 21st October 2023.
Mustafa Ishak was appointed as Chair of the CMI Malaysia Regional Board in a sudden manner. Mustafa Ishak is currently at the centre of findings by the Auditor General’s Report alleging misuse of public funds at the National Professors Council. This is now under investigation by the Public Accounts Committee and MACC.
The outcome of the MOHE investigation into CMI has not been revealed. In addition, the recent arrest and remand of a senior professor who is connected to NPC reveals an escalation in their investigation of the NPC.
The CMI activities for members in Malaysia have all but dried up with only two events for 5,000 members in carried out over 8 months.
The CMI Malaysia scandal appears to be affecting their business in the UK with discounts of GBP150 or 25% on certificates now being offered in what looks like a fire sale.
A similar 20% discount is being offered for membership fees across Asia-Pacific in what looks like a bid to stem losses in membership and renewal numbers.
According to public accounts, debts and losses to the UK charity of almost GBP1.2 million have been written off as bad debts due to mismanagement of their commercial Malaysian activities.
CMI’s 2023 accounts revealed a huge decline in net income by half compared to 2023 and negative cash-flows hemorrhaging money from the charity funds in 2023 compared to a GBP3 million surplus the year before.
FMT recently reported a further GBP1.5 million is at risk due to membership suspension and threats of non-renewal by 21 Malaysian universities.
It might be time for CMI President Fiona Dawson to give an explanation about CMI Malaysia’s operation.
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The CMI is about as creditworthy as the University of London and many other British instiutes of tertiary learning and their professional organizations. A by product of Margaret Thatchers privatization of the public education system.