This startling revelation of the state of affairs in the MIED emerged yesterday as the public expressed outrage over a reported move by MIC president Datuk Seri S. Samy Vellu to “hijack” the entity — considered the jewel in the crown of the MIC — and turn it into an NGO headed by himself.
An insight into the MIED, worth RM1 billion and which owns AIMST, showed little involvement by the members in the affairs of the first private university in the country.
The life members comprise 25 members, seven trustees and the chairman Samy Vellu. MIED life member S. A. Vigneswaran told Malay Mail that resolutions were usually distributed to the members at the party’s Central Working Committee (CWC) meetings.
“Since almost all the members are in the CWC, they just sign the resolutions at such meetings.”
Another life member, who requested anonymity, said: “There are no discussions and most of the time these members are not in the know of developments in the MIED.”
Asked if the board of trustees could be relied upon to pass a resolution thwarting such attempts, he said: “It would be a waste of time as they are all allied to Samy Vellu.
“Further, I can think of only two occasions in recent years when they had a meeting – in 2003 and on Jan 2 this year.
“Therefore, you can’t depend on the MIED members and trustees to protect the interests of the party and community,” he said.
The life members were commenting on how the move to place the MIED under a foundation could be prevented.
Samy Vellu had reportedly said he plans to place the MIED and other NGOs he had established under a foundation to be chaired by him and other individuals, including foreigners.
The Oct 2 report that made the front pages of the Tamil newspapers quoted Samy Vellu as saying there are no links between MIED and AIMST.
Party and community leaders have responded with scathing comments that no individual be allowed to hijack the assets of the party and the community.
Vigneswaran said only a public outcry and the media could ensure MIED remains with the party. It is learnt that a nationwide campaign would be launched soon to rally support to fight to the end attempts to take MIED out of the MIC.
Their stand: The huge amounts of cash were raised from the Indian poor for the MIC’s education efforts.
Asked if there is a provision to call for an MIC extraordinary general assembly, the main proponent of the campaign, Datuk S. Subramaniam said his lawyers were looking into it.
On a statement by Samy Vellu’s son, Vell Paari, in the Tamil Nesan yesterday that the MIED is separate from MIC because political parties are not allowed to own business entities, several came out with guns blazing.
Explained one life member: “The MIED is not a business entity. It’s a trust organisation or a Section 24 company that is limited by guarantee.
“There are lots of limitations on what MIED can and cannot do.” He said in the case of the MIED, it has a board of trustees instead of directors who are elected by the life members.
Every political party has the same structure, he said. MIED trustees were reluctant to respond to our queries.
MIED was incorporated on Feb 29, 1984 as a company limited by guarantee. The initial subscribers of MIED were Samy Vellu, his chief rival Subramaniam, Tan Sri M. Mahalingam, Tan Sri K. S. Nijhar and R. Selvendara.
MIC members selling lottery tickets raised the first funds. The government also gave millions of ringgit for the building and management of the educational institutions that all came under the MIED umbrella.
MIED is currently embroiled in a scandal with Samy Vellu describing its former chief executive officer P. Chitrakala Vasu as a “thief” while she has accused the veteran politician of siphoning funds.
MIED, whose core business is providing study loans, sourced millions of ringgit from the Indian community,
received about RM300 million from the government and acquired a RM220 million loan from Bank Pembangunan Malaysia to build the AIMST campus.
The cost of construction ballooned from an initial RM230 million to close to RM500 million. MIC’s probe into the fiasco revealed the disappearance of RM5.25 million.
Meanwhile, Samy Vellu has reportedly said he is going on two months’ leave.
‘AIMST must remain MIC asset’
The senior politician, however, said he has not given up the fight for the Indian community. He is now furious over the statement of his arch nemesis, MIC president and MIED chairman Datuk Seri S. Samy Vellu, regarding MIED.
The founding member of MIED was appalled by Samy Vellu’s statement that the latter wanted to take MIED with him when he leaves.
Subramaniam met with the media yesterday at his residence to address the issue.
Why are you refuting Samy Vellu’s statement on MIED that was made on Malaysiakini that he will be leaving with MIED?
As a founding member of MIED, I will fight to ensure that the party and the community assets are not hijacked by any individual. MIED and AIMST must remain part of MIC’s assets. Every MIC leader and member has contributed in one way or other in making AIMST University a reality.
How was MIED funded?
Each MIC branch was told to raise RM11,000 minimum, or the branch will not be given the B Form. There
have been individual contributions as well. Somebody called up yesterday (Saturday) after Samy Vellu made his statement. That person had contributed RM100,000 to MIED because he believed that it was part of MIC and the foundation would help the Indian community.
Non-Indians have also contributed to it.
What is MIED’s financial status?
MIED received RM300 million assistance from the government. I am sure no other NGO would have received this much money. RM100 million was collected by the party and individuals. After that, RM100 million was placed into a fixed deposit account and a loan of RM220 million was taken for development.
Currently, MIED is in debt of RM300 million due to capitalised interest.
What are you going to do about this?
If there is any intention by Samy Vellu to hijack a RM1 billion company, it must be stopped immediately. I will do everything that is necessary to ensure this does not happen.
Some have said that you are getting personal with Samy Vellu and this is another pot shot at him. Your comments on this?
I have not got personal with him.
This is the interest of MIC and the Indian community that I am fighting for. I have no interest in the chairmanship. AIMST must always be an asset of MIC. That’s what I am fighting for.
MIED members list
Chairman:
Datuk Seri S. Samy Vellu (MIC president)
Trustees
1. Datuk G. Palanivel (MIC deputy president)
2. Tan Sri M. Mahalingam
3. Tan Sri K. S. Nijhar (MIC disciplinary committee chairman)
4. Tan Sri G.Vadiveloo
5. Tan Sri K. Kumaran
6. Datuk Dr. T. Marimuthu
7. Tan Sri Dr. K. Ampikaipakan
Members
1. Datuk S. Subramaniam
2. Datuk S. Veerasingam (Perak MIC chief)
3. Datuk S. Sothinathan
4. S. A. Vigneswaran
5. Datuk Dr S. Subramaniam (MIC vice-president)
6. Datuk S. Ganesan
7. Datuk R. Ganesan
8. Datin Paduka Komala Krishnamoorthy (MIC Wanita chief)
9. Kamala Ganapathy
10. Datuk K. S. Balakrishnan (Johor MIC chief)
11. Datuk V. Saravanan
12. Datuk Dr L. Krishnan
13. Datuk G. Rajoo
14. Senator Datuk M. Ratnam
15. Datuk K. R. A. Naidu
16. Datuk M. Saravanan (MIC vice-president)
17. Senator N. S. Krishnan
18. Datuk M. Ramachandran
19. P. Chitrakala Vasu
20. Datuk R. Raghavan
21. Datuk M. Davendran (Pahang MIC chief)
22. Datuk T. Rajagopalu (Negri Sembilan MIC chief)
23. Datin Paduka Jaya Partiban
24. Datuk Chandrasegar Suppiah
25. Datuk N. Selladurai.
Subra, Sothi unite
DEFEATED MIC deputy presidential candidates Datuk S. Subramaniam and Datuk S. Sothinathan appear to be united in this cause.
Subramaniam, a MIED founder member, has urged the community to rise and unite to save what’s theirs before it is lost.
He also urged MIE D directors, most of them allied with Samy Vellu, to do their duty and speak up to save the assets of the party and the community.
He said he did the concept paper for MIED, raised funds along with MI C branches and division for MIED and AIMST.
“Every MIC member and leader in one way or other has contributed to making AIMST a reality,” said Subramaniam.
“It is a collective achievement of the MIC as a whole and not an accomplishment of any individual.” Sothinathan said: “It is public knowledge that MIE D is part of MIC. It will be like stabbing the Indian community in the back if his (Samy Vellu’s) statement comes true. It’s a form of betrayal.”
Meanwhile, MIED trustee Tan Sri M. Mahalingam refused to comment when contacted yesterday.
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