The Malay Mail
CCM investigating MIC's jewel for various alleged offences
Thursday, January 14th, 2010
KUALA LUMPUR : The MIC's jewel in the crown, Maju Institute for
Education Development (MIED), has been dealt another blow with the
Companies Commission of Malaysia (CCM) investigating it for alleged
violation of eight sections under the Companies Act.
The commission, in a letter dated Dec 21, 2009, informed the
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail
Sabri Yaakob that investigations were under way.
It was learnt that Ismail had ordered CCM chief executive officer
Datuk Azmi Ariffin to investigate complaints against the MIED involving
alleged breach of trust, financial mismanagement, abuse of power,
negligence and breach of statutory duties by the trustees.
CCM noted that MIED was being investigated under the Companies Act under the following sections:
● Section 143 – failure to hold annual general meetings;
● Section 165 – holding the 23rd AGM (scheduled for Monday) to approve audited accounts for 2004, 2005 and 2006;
● Section 169 – failure to submit profit and loss accounts balance sheet and directors' report;
● Section 129 — failure to obtain the sanction of members to allow
six trustees, who were already above the age of 70 in 2008, to continue
in office for the year 2009;
● Section 152 — failure to pass a special resolution on trustees above the age of 70 seeking re-election;
● Section 132 — negligence of directors;
● Section 133 — granting loans to directors, and
● Section 364 (2) — misleading and false information in the balance sheet.
This development comes ahead of a MIED meeting on Monday to approve accounts for the years 2004, 2005 and 2006 at the same time.
It also comes in the wake of an unprecedented derivative action
under Section 181 of the Companies Act 1965 against nine trustees of
the billion-ringgit MIED.
MIED was rocked last week when Tan Sri Dr K. Ampikaipakan resigned
as AIMST University chairman, trustee and director of MIED. Two other
AIMST directors are expected to follow suit.The class action suit by
MIC Youth head S. Vigneswaran is set to open a can of worms
arising from alleged irregularities that have wrecked the credibility
of the party.
Section 181 allows MIED, as an entity, to sue to recover or punish
its trustees, directors and officers for losses, fraud, negligence and
MIED founding member Tan Sri K.S. Nijhar said he was not aware of
any investigation by the CCM. "Anyway, I welcome any investigation and
if anybody within the MIED or associated with it has violated any law,
then they deserve to be punished," he said.
MIED, a Section 24 company that operates with government grants and
public donations, is limited by guarantee. It has been mired in
financial irregularities and has not had a formal AGM since its
establishment in 1984.