Share |

Thursday, 20 January 2011

MIED fiasco: ‘Let the evidence talk’

KUALA LUMPUR: Former MIC Youth chief SA Vigneswaran is looking forward for the documents pertaining to the party’s education arm to be tendered in court.

On Jan 10, the High Court ordered Maju Institute of Educational Development (MIED) chairman S Samy Vellu and its seven trustees to provide several documents within 30 days.

The documents include those relating to the construction of the Asian Institute of Medicine Science and Technology (Aimst), which allegedly caused huge losses to the education arm of MIC.

Also on the list was the letter of appointment of former MIED chief executive officer P Chitirakala and her scope of work.

“Let’s hope they’will comply with the court order and let the documentary evidence ‘do the talking’ as to whether there is any truth to my allegations against these people,” said Vigneswaran.

He also claimed that his legal action was not an act of vengeance, but to ensure that MIED remained on a strong footing with all its assets intact to cater for the lower income group.

“All MIED assets should be accounted for and whoever misappropriated its assets should be accountable for their action,” he told FMT.

“I wish to reiterate that I have personal knowledge of a former senior MIED executive appointed by the chairman (Samy Vellu) swindling more than RM10 million,” he added.

No turning back

Vigneswaran also dismissed the speculation that he might backtrack on his legal action following his return to MIC, saying these were separate issues.

“It has been an uphill task for me and my legal team to arrive at this stage, it will be difficult to back down now.

“Probably the only way to persuade us, is if someone can assure us that MIED will not face a similar fate like Maika Holdings (MIC’s debt ridden financial arm),” he added.

Other than Samy Vellu, the other defendants are current MIC president G Palanivel, M Mahalingam, T Marimuthu, SK Ampikaipakam, KS Nijhar, K Kumaran and G Vadiveloo.

In the RM100 million suit, filed on July 5, MIED (Vigneswaran) claimed that all the defendants had breached their fiduciary and statutory duties, and failed to discharge their responsibilities as trustees and auditors, which caused MIED to suffer huge losses.

MIED is also seeking an injunction to restrain Samy Vellu from continuing to hold the post of chairman, strip him of his membership in MIED, and the return of all monies or profits made from MIED either by himself or through family members and close friends.

MIED also wants the court to order Samy Vellu to compensate all the financial losses incurred by the institute during his tenure as chairman.

Vigneswaran, who is also a member of MIED, had sought the court’s permission to initiate the suit under the Companies Act 1965.

The High Court would hear the suit on April 27 and some 50 witnesses, including Samy Vellu, are expected to take the stand.

No comments: