AGAIN, THE RM100 MILLION SURFACES!
This time, it might be in the benefit of the Indian community.
I am member of Maju Institute of Educational Development (MIED) which is a company limited by guarantee pursuant to Companies Act 1965. I received a copy of the Memorandum and Articles of Association of MIED on 27th March 2009 after I requested a copy from MIED’s Company Secretary through my solicitors on 5th March 2009.
The following statement is made after due consultation with my Accountant and Solicitor.
Any misuse of public funds, particularly when those monies that were given by government and public as government grants and donations intended to support a marginalized community, is unacceptable.
The objective of the establishment of MIED as per Article 3 of the Memorandum of Association states, “to receive and administer funds for education, scientific and charitable purposes, all for the public welfare and for no other purposes and to this end: (a) to foster, develop and improve education of all kinds and in such manner as may, from time to time, be decided upon by the Institute including but without prejudice to the generality of this provision, the founding and maintaining of scholarships, provided that it does not contravene the provision of the Education of Law of Malaysia; (g) to assist, aid and give relief to the poor and needy who by reason of age, ill-health, misfortune or infirmity are wholly or in part unable to maintain themselves and their dependents by their own exertions and in particular widows and orphans, victims of fire, floods, famine, war or calamity and those in need of moral or social rehabilitation or welfare” (emphasis added).
There are no other provisions as regards giving of any study loans. Any disbursements of money to the needy are ONLY by way of scholarship or grants.
A total sum close to RM100million has been disbursed as study loans to almost 10,000 students with an accruing interest at the rate of 6% per annum. This interest is charged on an annual basis commencing from the 6th month after completion of the studies funded through MIED. From 2008, an additional interest of 2% per annum is charged from the time the loan is disbursed and the 6% upon completion of the course till the loan is settled.
1. MIED is not authorized to give any study loan but only scholarships under its own Memorandum of Association.
2. To give any loan, with interest, whether study loan or otherwise requires a money lending license without which it becomes illegal. Todate, MIED does not have any money lending license. Therefore, all monies collected with interest is illegal.
3. All monies collected with interests are taxable. Failing to pay tax is another breach of the law and failing to declare the interest as an income is evading tax and illegal.
4. In an Institution such as MIED, a Section 24 company under the Companies Act 1965 which has acquired a Tax Exemption status, it must disburse all funds received for its intended purposes (like donations and grants) within 18 months. Failing to do so, the income is deemed taxable and if the monies are placed in Fixed Deposits (like the millions collected as government grants and donations were and are kept) as in the case of MIED, becomes taxable. Failing to declare and pay tax on such accrued gains are again illegal.
5. MIED has and is violating its own Memorandum and the Malaysian Law.
Dato Seri S. Samy Vellu, MIED Board of Trustees, MIED’s Company Secretary and MIED’s Auditors should take responsibility for these unacceptable acts and omissions, where not a single members meeting was held except for signatures collected during the MIC’s Central Working Committee (CWC) Meetings since the inception of MIED in 1984. Prior to January 2009, MIED’s Board last met in 2003.
SA Vigneswaran
(019-3832281)
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