The RM1 million spent on books part of the more than RM5 million reported missing from MIED coffers
Thursday, January 28th, 2010, The Malay Mail
A high-ranking MIC leader allegedly
authorised the purchase of RM1 million worth of books for Tamil
schools nationwide, the Malaysian Anti- Corruption Commission (MACC)
Sources said former MIED Capital Sdn Bhd
chairman Tan Sri M. Mahalingam told MACC officers that the sum came
from Maju Institute for Education Development (MIED) that is under
Mahalingam, the sources said, was of the view that it was wrong of
the MIED, which operates on public donations and government grants, to
purchase the books from a publishing house as it served no purpose for
The sources said Mahalingam alerted the MACC that the RM1 million
was part of the more than RM5 million initially reported missing from
The book, priced at RM150 each, was written by former MIED chief
executive officer and financial officer P. Chitrakala Vasu, who is now
at the centre of a row with MIC president Datuk Seri S. Samy Vellu over
missing MIED funds and files.
The 300-page book, Samy Vellu, As We Know Him, is a compilation of
97 glowing tributes from people whose lives had been touched by the
former Works Minister and MP for Sungai Siput.
The matter came to light on the third day of MACC’s investigations
into some RM4 million of MIED funds that were reportedly routed to the
accounts of two companies owned by the family of a former key institute
It has been alleged that the sum, paid out by MIED as advances to
MIED Capital, a special purpose vehicle formed to manage MIED, was
siphoned off to two of the companies after MIED Capital reimbursed the
Mahalingam, who was removed as chairman of MIED Capital and MIC
treasurergeneral on Dec 24, 2008, was the second high-profile MIC
leader to be interviewed by the MACC in connection with controversies
surrounding the MIED.
Mahalingam confirmed that he had been interviewed but declined
further comment. Earlier, MACC officers recorded a statement from
another MIED Capital director, Tan Sri K. Kumaran, who together with
Mahalingam, co-signed the three cheques for RM4 million.
Yesterday, the MACC team, examining the financial paper trail,
seized more do*****ents. They included the minutes of board meetings
between MIED and MIED Capital Sdn Bhd that detail the advances of RM4
by MIED to its subsidiary.
Sources said the minutes were critical do*****ents as they revealed how the advances were made.
The MACC is expected to question the high-ranking MIC leader next.