MACC raids MIED office in RM4m CBT probe

By Baradan Kuppusamy - The Malaysian Insider

Samy Vellu is expected to have his statement taken eventually. — file pic

KUALA LUMPUR, Jan 26 — The Malaysian Anti-Corruption Commission (MACC) raided the MIC’s MIED office here yesterday and today, in a probe on how RM4 million of the institute’s funds ended up in the accounts of two companies owned by a former senior MIED employee and her husband.

A MACC team seized files, records, plus other materials and questioned staff at the MIED office, on the second floor of the MIC headquarters in Jalan Rahmat.

Sources said the officers spent about two hours at the MIED office yesterday and had returned today to continue their investigation, which also involves getting statements from the former senior employee, and two senior MIC leaders who were until recently an MIED trustee and director.

Sources said the MACC would also eventually take a statement from party president, Datuk Seri S. Samy Vellu who is also MIED chairman, to “round up” the probe.

They said the case involves alleged CBT, in which advances made by MIED to MIED Capital Sdn Bhd were later reimbursed by MIED Capital although the money ended up in two other companies.

The MACC is probing the paper trail and the authority structure to ascertain who authorised the issuance of the cheques to the private companies instead of into the MIED account.

According to a senior MIC official aware of the situation, it seems to be an “open and shut” case of simple CBT.

Former MIED CEO and financial officer Chitrakalla Vasu had lodged several reports with the MACC and police over alleged mismanagement and fraud in MIED last year.

MIED, in return, also lodged police reports against her over alleged “missing” money and abuse in MIED.

The fallout between the Chitrakala and Samy Vellu was the talk of MIC circles last year, with each accusing the other of fraud and taking the MIED for a ride.

The MIED is the MIC’s education arm and had received millions in donations from MIC members, the Indian community, and the government to support the MIC’s education ventures.

MIED owns the RM1 billion Aimst University in Kedah where construction cost has ballooned, by one account, from RM150 million to RM500 million.

The government had given RM300 million in grants for its construction but MIED still owes Bank Pembangunan approximately RM230 million in loans.

Former MIED founder member Datuk S. Subramaniam also alleged last month that the MIED is “supposed to hold” in trust about RM2 million in Tenaga Nasional shares and that if these shares are disposed-off, the MIED is entitled to 50 per cent of the proceeds.

“I don’t know what is the status of the Tenaga shares,” he had said.