KUALA LUMPUR, April 7 (Bernama) -- Former Maju Institute of Educational
Development (MIED) chief executive officer P. Chithirakala drafted a
supporting letter to then deputy prime minister and defence minister
Datuk Seri Najib Tun Razak over an application for the National Service
Camp project, the Sessions Court here was told Thursday.
Former MIC president Datuk Seri S. Samy Vellu said the letter, dated
July 28, 2006, was signed by him on a works ministry letter-head, based
on trust on Chithirakala after she had convinced him that Silver Line
Services Sdn Bhd was 100 per cent Indian-owned company and the community
could benefit from it. nhy70
"I signed the supporting letter for the purpose of the Indian community
and not for the benefit of Chithirakala's family," he said when
cross-examined by defence counsel Datuk Salehuddin Saidin.
Nevertheless, Samy Vellu agreed with Salehuddin's contention that he,
as a senior minister then, should have been more careful in knowing the
contents of the letter since it involved the ministry's official
"I signed it since I trusted her and believed she would not put me in
trouble," said the former MIC president who acknowledged earlier in
court that during his entire political career, he had never testified in
To another question, he said he was unaware of the nature of Silver Line Services.
Denying he had sent the letter to Najib since his son, Vell Paari, had
shown an interest in that particular company, he said: "It's an
abundance of lies".
Samy Vellu, who is also MIED chairman, told the court that Chithirakala
was first appointed as MIED accountant in 1995 before being promoted as
group financial controller.
She left MIED in 2002 and was rehired, two years later, as CEO (chief executive officer).
He said, as CEO, Chithirakala was given power to decide on the amount
of payments to creditors of the education-arm of the party and also
carried out the task as secretary, including convening meetings of the
MIED trustee board.
"She failed to call for meetings for nearly four years and never
submitted financial accounts before her sacking in early 2010," he
On May 11, last year, Chithirakala, 40, claimed trial to cheating
former MIC treasurer-general Tan Sri M. Mahalingam, 74, a director and
signatory of MIED Sdn Bhd, by inducing him to sign three cheques for RM1
million, RM1 million and RM2 million, respectively, in 2007.
During the trial, even though Samy Vellu disagreed with Salehuddin's
contention that Chitirakala was re-hired as CEO because he trusted her
capability, he said at that point, they needed someone with experience,
not only to manage MIED but also another group of companies.
On the appointment letter dated May 23, 2004 tendered by the defence,
Samy Vellu agreed with Salehuddin that Chithirakala was paid a monthly
salary of RM10,000, an increment of RM2,000 after confirmation of six
She was also paid an increment of RM2,000, upon one year of service and annual increment of 10 per cent.
Chithirakala was also paid transport allowance of RM2,300, living
allowance of RM5,000 yearly, RM5,000 entertainment allowance (yearly),
RM15,000 holiday allowance (yearly) and travel in business class on all
travels related to MIED.
Samy Vellu also agreed with Salehuddin that other MIED directors enjoyed similar allowances.
On another issue raised by Salehudin over the affidavit filed
Mahalingam in a related civil action that Samy Vellu never consulted the
board affairs related to MIED, especially on awarding contracts of
AIMST medical college, he categorically denied it.
"It's a collective decision where board of trustees normally commenced
each month, where most of the MIC CWC members were trustees and
contracts awarded were based on the studies and recomendation of
consultancy firms hired by us," he explained.
Questioned further by Salehudin why Mahalingam, whom he described as
"good friend", said something very damaging against him, Samy Vellu
said: "Good friends become bad friends when you remove them from their
position", in reference to Mahalingam's removal as treasurer-general,
three years ago.
The hearing before Judge Che Mohamad Zulkifly Jusoh continues Friday
where Samy Vellu is expected to be cross-examined further before the
prosecution calls its second witness, (Samy Vellu's son) Vell Paari.
Salehuddin was assisted by counsel J. Chandra, while the prosecution
comprised deputy public prosecutors Kevin Morais and Wong Pooi Yoke.