At a press conference today, she offered up a glimpse into how her
former boss thinks, works and manages the millions that the government
has allocated over the years to the MIC to alleviate Indian poverty.
But before opening the window into the world of Samy Vellu and his inner circle, Chitrakala said: “I am very scared of this man.
"He has got money, people. I am an ordinary person, I am very
scared. He has got everybody with him; I don’t have anybody with me.
But I thought going public is my best protection.”
She was once so close to Samy Vellu that she became the subject of gossip, suggesting she was having an affair with him.
“It is all lies but I was that close to him,” Chitrakala told the
press conference at the crowded Lotus restaurant in Jalan Gasing,
She said Samy Vellu was now going after her and trying to pin on her
all sorts of allegations of financial improprieties connected with
MIED, the MIC arm that operates the AIMST University and other colleges.
“MIED is worth RM1 billion compared to Maika Holdings which is worth
zero,” Chitrakala said, adding that her relationship with Samy Vellu
started to sour after the March 8 general election as he became
suspicious of everybody around him.
“He felt very insecure after losing in Sungei Siput and losing as
minister. Not being a minister anymore and without it he was a nobody.
He knew his days were numbered and he would be challenged for the
president’s post. So he got very insecure and saw enemies everywhere,”
One of the issues that arose was the future of MIED which, being worth RM1 billion, was the jewel in the crown of the MIC.
But Samy Vellu saw MIED as a different entity and having nothing to do with MIC or the Indian community.
According to her, he knew he could lose as MIC president but he wanted control of MIED.
“He did not want to let go of MIED. He wanted to remain as MIED chairman and chancellor of AIMST University,” said Chitrakala.
“The way to do it was simple, he wanted MIED removed from MIC,” she
said. “MIED is for Indians. He wanted to divorce it from MIC. Legally
it can be done but morally it is very wrong.”
“I cannot let what happened to Maika Holdings happen to MIED. I told
myself that I have no strength to challenge Samy Vellu on this but my
husband supported me,” he said.
One of the first acts Samy Vellu ordered, and over which Chitrakala
baulked at, was an instruction to remove former MIC deputy president
Datuk S. Subramaniam as a director of MIED.
“After that Samy Vellu wanted to get rid of nearly everybody, all
the 35 members of MIED. He even wanted to get rid of Palani (MIC deputy
president Datuk G. Palanivel). He marked a whole list of people for
removal and asked me to do it.”
Chitrakala told Samy Vellu he could not do it. “I said MIED is not
MIC where he can sack and put in anybody he likes at his whims and
fancy. MIED is governed by company law and he can’t do as he likes.
“He got very angry with me,” she said.
Then Samy Vellu asked her to move the MIED office out of the MIC building in Jalan Rahmat here to somewhere else.
“I also disagreed but I did not say no directly. I just delayed the
matter. People visit the MIC office for MIED help. We are tied
together, we cannot be separated physically,” she said.
“So this is the background of why we had a falling out and finally
the crunch was he tried to force me to make payments to AMIST
University contracts without proper do*****entations,” she said.
"Samy Vellu also asked me to make advance payment to contractors."
The fight between the two even got down to little things like the
wording on the plaque unveiled when AIMST was opened by the Prime
Minister Datuk Seri Abdullah Ahmad Badawi last year.
The plaque had the words: Malaysian Indian Congress, MIED presents AMIST University to all Malaysians.
“A few days later Samy Vellu called and ordered me to remove the
words Malaysian Indian Congress. I asked why and he said MIED was not
linked to MIC.”
Samy Vellu in the case of the missing files and government funds
makes a point at today’s press conference. She said she and her family
now live in fear for their lives. — Picture by Choo Choy MayBy Baradan Kuppusamy
KUALA LUMPUR, Feb 28 — The murky financial dealings of MIC were laid
bare today after a one-time loyalist implicated Datuk Seri S. Samy
Vellu in mismanagement of party funds and misappropriation of
P. Chitrakala Vasu, who is at the centre of a raging row with Samy
Vellu over the MIED financial fiasco, alleged today that up to RM2
million raised for tsunami victims in 2004 was transferred from
government accounts to a party foundation controlled by the MIC
She also alleged that lorry-loads of files were removed from the
office of MIED, MIC's education arm of which she was once the chief
MIED had raised millions of ringgit from the Indian community, in
addition to receiving about RM300 million from government sources and a
loan of RM220 million from Bank Pembangunan Malaysia, which is
outstanding, for the construction of the AIMST university in Kedah.
Today, Chitrakala made public two reports she made earlier in the
morning in Shah Alam urging police to probe the whereabouts of the MIED
files and also RM2 million in donations collected in 2004 for tsunami
victims in Sri Lanka.
In her report, she claimed the RM2 million was deposited from the
Works Ministry into the account of the Yayasan Pemulihan Social (YPS)
of which Samy Vellu is chairman and Chitrakala the CEO. Samy Vellu was
then the works minister.
“Some time in February 2008 (just before the March 8 election) Samy
Vellu telephoned me and informed me that the Works Ministry Treasury
would transfer RM2 million into the YPS account and asked me to place
the money in fixed deposit,” she said in the report.
“He told me this money was for the people of Sri Lanka but since it
was not used he was transferring to YSS for later use,” she said.
"The money was put in a CIMB fixed deposit account and was still
there when I left on Jan 2, 2009,” she said in the report, adding that
she was making the report to prevent Samy Vellu from using the money
for any other “unauthorised purpose”.
She also fears she might be blamed if the money when “missing”.
In the second report, she urged police to investigate “missing” MIED
files and gave details of a heated confrontation she had with Samy
Vellu in his office on Dec 31, 2008 in the presence of MIC
vice-presidents Datuk S. Veerasingham and Datuk S. Sothinathan.
“A heated argument broke out after Samy Vellu made baseless
accusations and I told him I will see him in court but he replied court
is not the place,” she said in the second report.
In the report, she said Samy Vellu allegedly told her that he would "make sure the police arrest and embarrass you”.
“Soon thereafter I was slammed with five show-cause letters and more followed after this,” she said.
“After I left on Jan 1 without even taking my personal belongings I
learned lorries were used to remove files from the MIED office and
taken to an undisclosed location on orders of Samy Vellu,” she said in
At the press conference, Chitrakala said the police must investigate
how so many files had gone missing and why she is being blamed for it.
“What secrets these files hide?” she asked.
“This is only the first part… there is more coming,” a defiant Chitrakala told a press conference at a restaurant here today.
“I was followed, photographed, harassed and threatened in the days
leading to this press conference,” said a visibly angry Chitrakala, 38,
who is married with four children.
Even major newspapers considered close to Samy Vellu were not
invited to the event for fear the news would be leaked and she could be
waylaid or the press conference somehow scuttled.
“He pushed me to the wall, he asked for this (revelations). I worked
hard for him and protected him for 14 years but in the end he came
after me and pushed me to the wall,” Chitrakala told The Malaysian Insider
before the press conference.
“I am not afraid of him… I know the truth behind him,” she said,
adding all the accusations Samy Vellu had made against her over the
missing MIED files and for involvement in corrupt deals were false and
designed to shatter her.
“He has to answer not me,” Chitrakala said, breaking down in tears at how she and her family now feared for their lives.
“He is powerful, he is big… we are nothing. But we have the truth,
the people behind us. That’s why I am going public. The people have a
right to know,” she said.