Mother’s day just passed by but that may not deter the
Malaysian Anti-Corruption Commission (MACC) from charging Supermom Chitrakala
Vasu, former MIED CEO, for hijacking funds collected from poor Indians for her
business ventures ranging from Auto servicing to National Service Camp.
According to sources, Chitrakala Vasu is expected to be
charged as early as tomorrow, according to sources.
The mother of four kids while being CEO of MIED is also
having interest in 13 companies.
The current MIC youth leader, Mohan Thangarasu, is one of her
main business partner who apparently betrayed her to please Samy Vellu so that
his political career is not in jeopardy.
It’s unclear whether former MIED treasurer Mahalingam will be
charged or whether he may turn out to be a witness.
Supermom was specially chosen by Samy Vellu, MIC president,
to helm the MIC education arm with the hefty RM 25,000 per month salary.
May 10, 2010
KUALA LUMPUR, May 10 — Anti-graft investigators are wrapping up a
probe into alleged fraud involving MIED, the MIC’s education arm, and
sources said former top officials are expected to be charged later this
week with criminal breach of trust.
Several top politicians and senior MIED officials have been
questioned in recent months as the Malaysian Anti-Corruption Commission
(MACC) finishes investigations into allegations that RM4 million had
been pilfered from MIED.
Samy Vellu denied authorising
payments for non-MIED purposes. — file pic
The probe revealed that MIED officials and MIC leaders had colluded
to use MIED money for their personal business purposes including, in one
case, setting up a National Service training camp, the sources said.
Among those who were questioned were MIC president Datuk Seri S. Samy
Vellu, former vice-presidents Tan Sri M. Mahalingam and Tan Sri M.
Kumaran, former MIED CEO Chitrakalla Vasu, and other senior officials.
The bone of contention was who had authorised the funds’ use for
purposes other than to advance MIED activities, as listed out in its
Memorandum of Association.
The Malaysian Insider understands that MACC officials took a final
statement from Samy Vellu today, and it is reliably learnt he denied
authorising any payments of MIED funds for non-MIED purposes. They also
questioned Chitrakalla today.
The purpose of the extensive questioning, officials said, was to
determine the paper trail and movement of the money.
Several of the people questioned, including Samy Vellu, are believed
to be considered witnesses in the case.
An MACC team seized files, records, plus other materials and
questioned staff at the MIED office, on the second floor of the MIC
headquarters in Jalan Rahmat, in January this year after police reports
were lodged by MIED director Datuk S. Sothinathan, a former MIC
Samy Vellu was questioned in his capacity as MIED chairman.
The case revolves around financial advances made by MIED to MIED
Capital Sdn Bhd, which were later supposed to have been reimbursed. But
the money ended up in two private companies linked to a former senior
official instead of the MIED.
Chitrakalla Vasu had also lodged several reports with the MACC and
police over alleged mismanagement and fraud in MIED last year.
MIED, in return, lodged police reports against her over “missing”
money in MIED.
She was Samy Vellu’s confidante for many years but the two had a
spectacular and very public falling out last year, with each accusing
the other of fraud and taking MIED for a ride.
MIED had received millions in donations from MIC members, the Indian
community, and the government to support the MIC’s education ventures.
It also owns the AIMST University in Kedah, which is reportedly worth