6:21PM Mar 30, 2009 http://www.malaysiakini.com/news/101313
Questions are being raised on whether MIC’s education arm, Maju Institute of Educational Development (MIED), a limited company under the Companies Act 1965, can give loans and collect repayments.
Mar 30, 09 6:21pm
Questions are being raised on whether MIC’s education arm, Maju Institute of Educational Development (MIED), a limited company under the Companies Act 1965, can give loans and collect repayments.
MCPX
This follows a revelation by former MIC Youth chief S A Vigneswaran today that MIED is not authorised to give out study loans but only scholarships under its Memorandum of Association (MOA).
Following this, he has taken MIC president S Samy Vellu to task and called on the veteran politician to explain the matter.
Providing Malaysiakini with a copy of the MOA, Vigneswaran said Article 3 stated that MIED would receive and administer funds for education, scientific and charitable purposes, all for public welfare and for no other purposes, and to this end:
‘To foster, develop and improve education of all kinds and in such manner as may, from time to time be decided 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 law in Malaysia’.
“There are no other provisions as regards to give any study loans. Any disbursement of money to the needy are only by way of scholarship or grants,” said Vigneswaran in a press release.
“MIED is not authorised to give any study loans but only scholarships under its own MOA,” he added.
RM100 million in study loans
Despite this, Vigneswaran, who is now the chair and legal consultant to the Malaysian Indian Youth Development Foundation (MIYDF), said MIED disbursed close to RM100 million in study loans to almost 10,000 students.
Over the years, MIED also charged six percent interest per annum six months after the student had graduated.
Vigneswaran said in 2008, an additional two percent interest was charged from the time the loan is disbursed and six percent upon completion of the course till the loan is settled. Read more ……