KUALA LUMPUR:  There is no misappropriation of funds by the Malaysian Islamic Economic Development Foundation (YaPEIM) as the organisation is self funded.

Deputy Minister in the Prime Minister's Department Datuk Dr Asyraf Wajdi Dusuki (pic) said the foundation "is an independent organisation and does not receive any grants from the Government" and tied to its trust deed.

"Even the minister has no power in their matters,"he said in his ministry's winding up speech for the 2016 Budget.

Asyraf said the foundation was not only formed to do charity work but to uplift the economic status of Muslims.

He said the charity work was funded by its own systems such as ar-rahnu, which has generated an income of up to RM83mil to date.

Asyraf said the foundation's total income to date was RM1.034bil.

Stresing that the funds are managed by the board of trustees, Asyraf said it has the liberty to decide as it an independent organisation.

"If YaPEIM wants to invite a minister and pay for his cost, then that is its right.

"The amount spent by YaPEIM for Minister in the Prime Minister's Department Datuk Seri Jamil Khir Baharom is merely 0.0063% of their annual income," he added.

Asyraf stressed that allegations against YaPEIM and Jamil Khir for misusing the funds of orphans for recreational purposes in the United States were untrue and malicious.

"It is the right of YaPEIM to decide on their programmes, as long as it is approved by their Board," he added.

Asyraf said the Auditor-General's Department did not find anything suspicious in its accounts last year.

Last Friday, National Oversight and Whistleblower (NOW) alleged that Jamil Khir, his wife and their entourage had travelled to the United States in May last year under the name of an official charity programme organised by YaPEIM.

Jamil Khir had denied the allegation, stressing that it was not a recreational trip.

He explained that the trip was organised with the help of the Malaysian Embassy in the US and Education Malaysia in Chicago.