The Malaysian National Cycling Federation (MNCF), through two office-bearers, has been ordered by the Sessions Court in Kuala Lumpur to pay Yayasan Sime Darby an amount of RM288,275.56.

Sessions judge Siti Noraida Sulaiman found president Abu Samah Abd Wahab and then deputy president Naim Mohammad in breach of a sponsorship agreement signed in 2010. Naim had resigned from his post last Saturday.

"On the balance of probabilities, the court is allowing the plaintiff's claim," said the judge.

MNCF and Yayasan Sime Darby entered into an agreement on April 19, 2010, to sponsor seven promising cyclists.

However, the foundation allegedly found that the federation could not provide documentation relating to how the money was spent.

Under the agreement, the foundation agreed to give MNCF a sum of RM2 million but it gave the federation RM1.96 million.

However, the foundation found there were a couple of breaches as the contract had expired in March 2012 when it conducted an audit and required the defendants to explain through letters sent in September and December that year.

Yayasan Sime Darby found that out of the RM1.96 million given, RM1.673 million was accounted for and properly spent.

It claimed that RM25,106.46 of the sponsorship money was spent by the federation for its administration fees, which was against what was stipulated in the agreement.

It subsequently asked the defendants to provide documentation of the unaccounted RM220,295.86 to show that it was actually spent properly.

The RM42,873.30 was supposed to be the balance but the federation claimed that it was not returned to Yayasan Sime Darby.

As a result of the failure to provide the documentation, Yayasan Sime Darby sought the return of RM288,275.56.