Prime Minister Najib must clarify rumours that the RM180 million allocation for Indian entrepreneurs under SEED is only an election scam.
PETALING JAYA: Several Indian groups and individuals want Prime Minister Najib Tun Razak to sack the existing officers of a special task force – Secretariat for the Empowerment of Indian Entrepreneurs Department (SEED) – for failing to carry out their duties efficiently.
The groups also warned that if Najib ignored their call, then they will organise a protest against SEED and it’s director AT Kumarajah.
SEED was set up early last year and in June Najib had announced a RM180 million special allocations for loans for Indian entrepreneurs. The SEED loans offered a fixed interest rate of four percent.
Of this RM150 million was announced as a special banking facility for Indian entrepreneurs. The balance RM30 million was for funding under TEKUN Nasional.
But the allocations have been riddled with hiccups.
Gagasan Usahawan Dinamik spokesman K Magindran said SEED had “failed” to empower the Indian entrepreneurs.
He claimed that 95% of the applications submitted to SEED had been rejected by the banks.
According to Magindran, 13 local banks had principally agreed to give RM150 million in loans.
“But when we approached the banks, we were told there is no special privilege to get these loans. We have to follow the normal procedure to get it,” he told a press conference here today.
Magindran said most applications were rejected on the basis of not having a business background and other problems.
“So, in what way is SEED claiming that it is a special allocation for Indians?” Magindran asked.
Also present were MIC Taman Mujur branch chairman VT Rajen, and Klang Chambers of Commerce and Industry member S Arikrishnan.
‘We have solid evidence’
Magindran also said that the applicants were fed-up with SEED, which took up to six months to process their applications for submission to the bank, only for the financial institutions to reject them.
“We have solid evidence where an Indian entrepreneur was allocated a RM3million worth government project.
“But when he applied for loans under the low interest SEED project, his loans were rejected. SEED took six months to process the application and because of its carelessness, the loan was rejected,” said Magindran.
He said the department officers were constantly giving lame excuses when questioned about the delay in loan processing and rarely picked up the phone.
“I have personally called AT Kumarajah for more than 600 times, but until today he has never picked-up the phone.
“Hence, what is the rational for the government to keep those people who are not willing to work?” asked Magindran.
Meanwhile, Rajen urged Najib to intervene and clarify widespread speculations that there was really no such special funds for the Indians and that it was all an election scam.
“There are many speculations about the special allocation. We heard that it’s not a special fund for the Indians. And there is no government guarantee to that money.
“The PM must clarify this rumour. He must change the office bearers of SEED,” Rajen said.
Rajen also gave Kumarajah and SEED officers two weeks time to resign their positions.
“They must all resign or we will take legal action against SEED for misleading the community,” he said, adding that SEED should not waste people’s time by conducting forums and discussions over the so-called fund.
PETALING JAYA: Several Indian groups and individuals want Prime Minister Najib Tun Razak to sack the existing officers of a special task force – Secretariat for the Empowerment of Indian Entrepreneurs Department (SEED) – for failing to carry out their duties efficiently.The groups also warned that if Najib ignored their call, then they will organise a protest against SEED and it’s director AT Kumarajah.
SEED was set up early last year and in June Najib had announced a RM180 million special allocations for loans for Indian entrepreneurs. The SEED loans offered a fixed interest rate of four percent.
Of this RM150 million was announced as a special banking facility for Indian entrepreneurs. The balance RM30 million was for funding under TEKUN Nasional.
But the allocations have been riddled with hiccups.
Gagasan Usahawan Dinamik spokesman K Magindran said SEED had “failed” to empower the Indian entrepreneurs.
He claimed that 95% of the applications submitted to SEED had been rejected by the banks.
According to Magindran, 13 local banks had principally agreed to give RM150 million in loans.
“But when we approached the banks, we were told there is no special privilege to get these loans. We have to follow the normal procedure to get it,” he told a press conference here today.
Magindran said most applications were rejected on the basis of not having a business background and other problems.
“So, in what way is SEED claiming that it is a special allocation for Indians?” Magindran asked.
Also present were MIC Taman Mujur branch chairman VT Rajen, and Klang Chambers of Commerce and Industry member S Arikrishnan.
‘We have solid evidence’
Magindran also said that the applicants were fed-up with SEED, which took up to six months to process their applications for submission to the bank, only for the financial institutions to reject them.
“We have solid evidence where an Indian entrepreneur was allocated a RM3million worth government project.
“But when he applied for loans under the low interest SEED project, his loans were rejected. SEED took six months to process the application and because of its carelessness, the loan was rejected,” said Magindran.
He said the department officers were constantly giving lame excuses when questioned about the delay in loan processing and rarely picked up the phone.
“I have personally called AT Kumarajah for more than 600 times, but until today he has never picked-up the phone.
“Hence, what is the rational for the government to keep those people who are not willing to work?” asked Magindran.
Meanwhile, Rajen urged Najib to intervene and clarify widespread speculations that there was really no such special funds for the Indians and that it was all an election scam.
“There are many speculations about the special allocation. We heard that it’s not a special fund for the Indians. And there is no government guarantee to that money.
“The PM must clarify this rumour. He must change the office bearers of SEED,” Rajen said.
Rajen also gave Kumarajah and SEED officers two weeks time to resign their positions.
“They must all resign or we will take legal action against SEED for misleading the community,” he said, adding that SEED should not waste people’s time by conducting forums and discussions over the so-called fund.
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