Vigneswaran, who is a MIED life member, responded: “It is the
Chithirakala whom you gave a salary of RM25,000.00 from MIED per month,
whom you helped get a National Service Camp, whom you gave the Perodua
and Proton dealership to and whom you gave paid holidays.”
Vigneswaran's initial question, when the accounts for 2009 was
tabled, was how much MIED had forked out in legal fees to initiate court
action against the former CEO for alleged misappropriation of funds.
“I was informed that the records as of today do not indicate what
amount had been paid as legal fees,” he said.
Vigneswaran then plunged the knife deeper when he asked why MIED did
not sue the 'negligent' trustees who were the signatories to the cheques
for the alleged payments misappropriated by Chitrakala.
“I got no answers to my questions,” he said.
Going for the jugular, the former MIC Youth chief told Samy Vellu,
who is the MIED chairman, that all the problems arose as a result of the
This, Vigneswaran said, led to a heated exchange.
“I also told him (Samy Vellu) that he has been negligent in his
duties as the chairman of the Board of Trustees and he should not be the
chairman and the trustee of MIED,” he said.
Early last year, the spotlight fell on MIED when S Sothinathan, who
was then MIC vice-president, lodged two police reports over missing MIED
The reports claimed that files pertaining to the MIC-owned university
Aimst were missing from the party headquarters.
Following this, Samy Vellu issued a show-cause letter to Chitirakala
to explain the discrepancies in the accounts of MIED, which runs the
party's Aimst University through a subsidiary company, MIED Capital Sdn
Chitirakala later accused the MIC president of siphoning MIED funds,
which Samy Vellu denied.
She also filed three defamation suits against Samy Vellu, his wife R
Indrani and Tamil daily Tamil Nesan, which is linked to the MIC
It was also reported that MACC is investigating a former executive of
MIED who allegedly banked RM4 million into his account that was
initially given out as a loan to a subsidiary of MIED.
Mystery over RM7
Meanwhile, Vigneswaran said when the accounts for 2007 were tabled,
he had asked if Rashid Manap, the former chairman of Maika Holdings, had
paid RM2 million in cash for MIED shares.
“Samy Vellu repeatedly claimed that he paid in cash. Then, I asked
the auditors for reconfirmation on whether the payment million was in
cash or was it a contra. At that point, Samy Vellu admitted it was a
contra made to monies owed to Rashid.
“It is unclear how the contra was done when other trustees have no
clue about it and no resolutions were passed to the effect,” he said.
Maika Holdings is the debt-ridden investment arm of MIC, of which
Samy Vellu's son Vell Paari is chief executive officer.
Vigneswaran said he had posed this question because MIED accounts
showed that the education arm owed Rashid RM7 million.
“It has been alleged over the years that in 2001, Rashid acquired 40%
of shares in Aimst Sdn Bhd by contra with RM2 million from the RM7
million allegedly owed by MIED to him.
“How and why MIED is owing RM7million to him from the early 1990s to
2008 remains a mystery. How Rashid gave the RM7 million and why did MIED
borrow the money from him is also a mystery,” he said.
“The members of MIED and some of the trustees have no knowledge of
all these,” he added.
Samy Vellu had decline to speak to reporters after the meeting.
MIED AGM: Expect fireworks over missing millions
By S Rutra
KUALA LUMPUR: Fireworks are expected when MIC's
education arm holds its 23rd annual meet tommorrow, where questions
concerning the missing millions are bound to be raised.
The money, which went missing from the Maju Institute of Educational
Development (MIED) account, was later traced to the personal account of
one of its former top executive.
Apart from MIED members, the
Indian community is also keen on knowing what happened to the funds,
which has been the subject of investigations by the police and Malaysian
The members, led by former MIC Youth
chief S A Vigneswaran, are expected to grill the MIED trustees on this
Former MIC deputy president S Subramaniam, who highlighted
an error by the MIED company secretary in sending out notices of the
AGM, and his supporters will most likely join in the fray.
Vigneswaran wrote a letter to the secretary higlighting another mistake
in the notice of the meeting dated March 9.
In the letter,
Vigneswaran objected to the AGM being held on the grounds that the
notice was defective.
were just rubber-stamps'
According to him, the
notice was defective based on the following incurable irregularities:
- The said notice is given pertaining to the 23rd AGM when in actual
fact the 23rd AGM is not for the current year but is the AGM for the
- The 23rd AGM is an adjourned AGM and the notice fails to specify it
- At the adjourned 23rd AGM, only item '1' on the agenda can be
validly executed i.e. laying of the audited financial statement for year
- Item 2 and 3 on the agenda cannot be carried out at the adjourned
23rd AGM for the year 2008.
Vigneswaran, who has been a life member of MIED since 2000, told FMT
that the education arm has never held a proper AGM.
said, it will be just done via circular resolutions immediatly after the
MIC Central Working Committee (CWC) meetings.
The 31 members of
MIED will blatantly endore without checking the details on the circular,
"Most MIED members are CWC members and they just
function as 'rubber-stamps' which resulted in the mess we are facing
today," he stressed.
MIC president S Samy Vellu and his deputy G
Palanivel are among the MIED trustees.
Police reports and
Early last year, the spotlight fell on
MIED when S Sothinathan, who was then MIC vice-president, lodged two
police reports over missing MIED files.
The reports claimed that
files pertaining to the MIC-owned university Aimst were missing from the
party headquarters in Jalan Rahmat, off Jalan Ipoh, here.
this, Samy Vellu issued a show-cause letter to MIED chief executive
officer P Chitirakala Vasu to explain the discrepancies in the accounts
of MIED, which runs Aimst through a subsidiary company, MIED Capital Sdn
Chitirakala later accused the MIC president of siphoning
MIED funds, which Samy Vellu had denied.
She also filed three
defamation suits against Samy Vellu, his wife R Indrani and Tamil daily
Tamil Nesan, which is linked to the MIC president.
said that she filed the suits to clear her name after being linked to
the missing money.
It was widely reported that MACC is
investigating a former executive of MIED who allegedly banked RM4
million into his account that was initially given out as a loan to a
subsidiary of MIED but ended up in his personal account instead.