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Wednesday, 9 September 2009

Ex-MIED chief takes her fight to IRD

But her fate now in the hands of Human Resources Minister, who is also MIC secretary-general
Tuesday, September 8th, 2009 , The Malay Mail
chitrakala Vasu
FIERY P. Chitrakala Vasu, the former chief executive of Maju Institute of Educational Development (MIED), the jewel in the crown of the MIC, has renewed her war with Datuk Seri S. Samy Vellu.


The 38-year-old mother of four, who has been accused by Samy Vellu of misappropriating MIED money, has lodged a report about her constructive dismissal as CEO with the Industrial Relations Department.

Chitrakala, a one-time confidante of the MIC president, who is also MIED chairman, has claimed in her report that she had been unlawfully removed as the CEO.

Samy Vellu had pinned allegations and financial improprieties connected with MIED on Chitrakala who was subsequently issued with five show-cause letters.

Chitrakala’s complaint was heard last Thursday after being postponed twice earlier.

However, since no agreement could be reached between her and MIED, the matter has now been referred to the Minister of Human Resources, Datuk S. Subramaniam.

It is learnt that Tan Sri G. Vadiveloo and Datuk Dr T. Marimuthu turned up representing MIED.

The latest development in the slug fest between Samy Vellu and Chitrakala has begun to take prominence
in the run-up to the MIC elections on Sept 12, particularly the construction cost of AIMST university that had reportedly ballooned to RM500 million from RM230 million.

MIED, the MIC’s education arm that operates the Asian Institute of Medicine, Science and Technology (AIMST) in Kedah and other colleges, is reportedly worth RM1 billion.

MIED runs AIMST, which was officially opened last year, through MIED Capital Sdn Bhd.

Chitrakala said in her report to the Industrial Relations Department that she had replied to all the five show-cause letters issued to her late last year, supported with documentary evidence.

However, she did not receive any response from MIED on her explanations.

A domestic inquiry panel comprising Tan Sri K.S. Nijhar, Vadiveloo and Datuk G. Palanivel was formed early this year to inquire into the allegations against Chitrakala.

The panel was dissolved soon after and was replaced with a new three-member panel. However, it is not known whether this panel did meet.

Chitrakala alleged that, initially, when she enquired about her salary arrears, she was informed by MIED that it could not credit her salary because the police had frozen her accounts pending investigations.

It is learnt that the freeze on Chitrakala’s accounts was lifted recently. She wrote to MIED notifying it of the development and requested for arrears salary.

MIED replied that her salary would only be paid upon completion of the internal investigations.

Aggrieved by MIED’s refusal to pay her salary for more than five months with no explanation on her employment status and its refusal to furnish documents requested by her, Chitrakala deemed herself as constructively dismissed and reported the matter to the Industrial Relations Department in July.

When contacted, Chitrakala confirmed that she had lodged a complaint with IRD.

“The matter is now in the hands of the Human Resources Minister who I hope will handle my complaint
with conscience,” she said.

Subramaniam, who is secretary-general of MIC, is in Samy Vellu’s “official” line-up as one of three vice- presidents in the party elections on Saturday.

Chitrakala said she is carrying on with her battle quietly as undue publicity causes agony to her aged parents and family members and that their safety is also a concern.

“I have filed this action mainly to fight the gross injustice and embarrassment brought to me by Samy Vellu.”

Though she is combating this battle alone, the daughter of a retired police clerk said she is doing it right using the available legal avenues.

Samy Vellu, 73, himself made Chitrakala chief executive of MIED. He has since accused her of misappropriating MIED money.

She is accusing him of hijacking MIED and tsunami relief funds and betraying the trust of the Indian community.

From great friends to sworn enemies

THEY were great friends, now they are mean enemies accusing each other of thievery, immorality and betrayal.

To P.Chitrakala Vasu, Datuk Seri S. Samy Vellu was more than a friend or a benefactor. He was the man who financed her education, launched her career and stood by her for over 20 years.

Chitrakala, 38, is now involved in an increasingly venomous spat that began after the March 8 general election when, according to her, he became suspicious of everybody around him.

She once told the media: “He (Samy Vellu) felt very insecure after losing in Sungai Siput and losing as minister. Not being a minister anymore and without it he was a nobody. He knew his days were numbered and he would be challenged for the president’s post. So he got very insecure and saw enemies everywhere.”

Then the accusations rolled:
• Chitrakala claimed Samy Vellu saw MIED as a different entity that should have nothing to do with MIC or the Indian community.
• One of the first moves Samy Vellu made, and over which Chitrakala recoiled, was the removal of former MIC deputy president Datuk S. Subramaniam as a director of MIED.
• The crunch came when Chitrakala alleged that Samy Vellu tried to force her to make payments to AIMST University contractors without proper documentation.
• She alleged Samy Vellu also asked her to make advance payment to contractors.
• Samy Vellu, on the other hand, has accused her of misappropriating MIED money.
• On Samy Vellu’s instruction, MIED lodged several police reports against her. She retaliated, lodging two reports against Samy Vellu in the tit-for-tat war. Police interviewed both of them.
• The claws soon came out with both publicly calling each other a thief. Samy described her as being a “thief devoid of any morals”.
• Chitrakala then laid bare the murky financial dealings of MIC, implicating Samy Vellu in mismanagement of party funds and misappropriation of government money.
• She alleged that up to RM2 million raised for tsunami victims in 2004 was transferred from government accounts to a party foundation controlled by the MIC president.
• She also alleged that lorry-loads of files were removed from the office of MIED.
• The furious slug fest gripped the attention of the nation and then went quiet, leading many to think Chitrakala had given up her fight.
• That was not to be. Last Thursday’s Industrial Relations Department hearing has resumed the war.

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