KUALA LUMPUR, May 26 (Bernama) -- Maju Institute of Educational
Development (MIED) chairman Datuk Seri S. Samy Vellu told the Sessions
Court Thursday, that when he wrote a supporting letter to then-deputy
prime minister Datuk Seri Najib Tun Razak (now prime minister) in 2007,
to secure a company's application for a National Service (NS) camp
project, he was in the dark who the directors of the company were.
He said he was unaware that former MIED chief executive officer (CEO) P.
Chithirakala was one of the directors of Silver Line Services Sdn Bhd.
During re-examination by Deputy Public Prosecutor Kevin Morais, Samy
said nothing was mentioned about the directors of the said company,
except that it was an Indian-owned company.
The former MIC president also said he wrote the letter in his capacity
as the works minister at that time, using the ministry's letter-head,
adding he never intended to "abuse" the letter-head, as suggested by the
Today was Samy's fourth day in court after testifying for three days,
beginning April 6, in the trial of Chithirakala who is facing three
counts of cheating, amounting to RM4 million, allegedly belonging to
To another question by Morais, Samy said Tan Sri Rashid Manan was
initially given 30 per cent shares in MIED Capital as requirement of
However, Rashid eventually returned the shares to MIED when such requirement was not needed anymore, he added.
"It was my decision in awarding the shares to Rashid Manan, and MIED
board members were fully aware of the shares," stressed Samy.
He also told the court that Rashid eventually was asked to take over
the construction of MIED-owned medical college AIMST in Kedah when MIED
could not pay the main contractor.
On April 7, Samy, during examination-in-chief, had told the court that
when MIC mooted the idea of the medical college, it was Rashid who
provided the initial loan of RM5 million to start the project.
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 -- two
for RM1 million each, and another, for RM2 million in 2007.
Cross-examined by counsel Jadadish Chandra, as to whether the three
cheques which were subject matter of the charges, were signed by him,
Samy replied that Mahalingam and Datuk K. Kumaran signed as directors of
MIED Capital Sdn Bhd.
"I only signed cheques related to MIED and normally, the cheques will be accompanied by vouchers," he explained.
However, he agreed with Chandra there were instances where he had signed cheques without vouchers.
He also told the court that as MIED chairman, he had initiated several
civil suits against Chithirakala and another former MIED staff,
Ramachandran Shasi Iyer, as part of efforts to recover RM1.7 million,
the "theft" of which, he alleged, was committed by the duo.
Second prosecution witness, Samy's son, Vell Paari, under
examination-in-chief, told the court that Chithirakala was not entitled
for payment of RM4 million when shares in Pyramid Saimira Theatre Chain
(M) Sdn Bhd and Asian Integrated Industries Sdn Bhd were transferred
back to him, although initially, both of them owned equal shares.
"She was just holding the shares on my behalf, for which the initial
paid-up capital was RM2 and RM4, respectively, for the two companies,
when she assisted me in setting them (companies) up in 2007," he
He said Chithirakala decided to hand over the shares to him after she
declined to be guarantor of bank loans for both companies which were
involved in distributing movies from South India.
Cross-examined by Chandra that since the paid-up capital of Asian
Integrated in July 2007 was RM2.5 million and should be enjoyed as 50:50
partnership of the company, Vel Paari said the money came from him, and
nothing from Chithirakala.
The hearing before Judge Che Mohamad Zulkifly Jusoh continues on June
27, where Rashid is expected to testify as third prosecution witness.