What happened to RM560,000 in royalty funds meant for artists?

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RM560,000 in Royalty Funds Remains Unclaimed by Artists

Members of PRISM Bhd have not received approximately RM560,000 in remaining funds from the dissolved PRISM Sdn Bhd. This sum was earmarked for distribution to PRISM Bhd members, who have not seen any payments for the past two years. PRISM Sdn Bhd has indicated that these funds are being transferred to liquidators, leaving the money in limbo since 2012.
Unresolved Distribution of Remaining Funds

The sum of RM560,000 was intended to be distributed to members of PRISM Bhd from the residual assets of the defunct PRISM Sdn Bhd. Despite this allocation, the intended recipients have not received any financial disbursements for the last two years. PRISM Sdn Bhd has stated their intention to hand over these funds to the liquidators, a process that has resulted in the money being inaccessible since 2012.
Questions Surrounding Past Collections

Concerns have been raised regarding the financial management of PRISM Sdn Bhd during its operational period. Between 2006 and 2011, the organisation was expected to collect RM25 million in royalties. However, records indicate that only approximately RM8 to RM9 million was raised, prompting questions about the whereabouts of the remaining funds.
PRISM Bhd's Efforts to Recover Funds

PRISM Bhd, a body formed by former members of PRISM Sdn Bhd seeking an independent representative organisation, has been attempting to resolve the issue of the outstanding funds. Legal department head Nivash Dhespal Singh indicated that amicable solutions have not been successful, and the possibility of legal action against those involved in PRISM Sdn Bhd is being considered. Accessing the funds is further complicated by a lack of power of attorney, which would enable PRISM Bhd to formally claim the money from the liquidators.
Impact on Artistes and the Music Industry

The ongoing dispute and the inaccessibility of royalty funds have directly impacted local artistes, who have expressed significant dissatisfaction with the distribution of royalties over the years. Many performers feel their rights have not been adequately safeguarded, leading to prolonged financial uncertainty. The situation highlights broader challenges within the music industry concerning transparency and the equitable distribution of collected royalties.

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What happened to RM560,000 in royalty funds meant for artists?

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