Posted by : SA.Vigneswaran in (Indian / MIC)
Maju Institute of Educational Development (MIED) Fiasco
Tagged Under : Indian, MIC, MIED
Press Release
SA Vigneswaran LLB (Hons) UK , CLP Malaya
Chairman,
Malaysian Indian Youth Development Foundation (MIYDF)
Life Member, Maju Institute of Educational Development (MIED)
6 March 2009
MIED Fiasco
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Any misuse of public funds, particularly when those monies that were given by government and public intended to support a marginalized community, is unacceptable.
Maju Institute of Educational Development (MIED) is a company limited by guarantee pursuant to Companies Act 1965.
The opening paragraph of MIED’s webpage on educational funds solemnly states, “Since the commencement of its operations in 1984, MIED has assisted needy students by providing study loans to pursue their courses and today it has become the leading provider of study loans to members of the Malaysian Indian community seeking such assistance for further education.”
What the opening paragraph omitted to state is that, in practice, MIED very generously provides personal and business loans to millionaires and upcoming millionaires.
In 1998, Samy Velu, the Chairman of MIED, authorized MIED to release a RM9 million personal loan to Tan Sri Hari Narayanan’s company.
In 2008, Samy Velu, authorized MIED to release a RM3.5 million business loan to Chitrakala.
In 2008, Samy Velu authorized MIED to release a RM30,000-00 personal loan to Mumtaj Begum, the current acting CEO of MIED.
All the loans were provided on a one year repayment basis and interest free.
The eligibility requirements for approval of such loan, even if allowed, is by way of a resolution passed by the Board of Trustees.
Where does Samy Velu derive his authority in sanctioning the unlawful financial assistance?
I am a life member of MIED. I have never received a single notice of EGM or AGM or a member’s meeting of MIED all these years.
The recent so called appointment of Dato Sothinathan and Dato Veerasingam is void because they were not elected by the members. The members of MIED should have elected the members to the Board of Trustees (this was not done) and the Board of Trustees then elect a Chairman.
None of the members including me were aware that we were suppose to elect the Board of Trustees until Chithrakala-MIED fiasco came to the limelight. When I enquired Chitrakala, she said she was under the impression all members knew the procedure and were handled personally by Samy.
In the construction of AIMST University, most of the contracts were awarded by Samy, through direct negotiation. A contract worth RM190 million was awarded to SP Setia Sdn Bhd, contract worth RM40 million to Maika Intellectual Resources (MIR) who sub contracted the entire work to various other companies which eventually led to the contract increasing to RM45 million and contract worth RM30 million to Nova Bloom Sdn Bhd.
Where does Samy Velu derive his authority, in sanctioning those awards? He is not an Executive Chairman of MIED. Therefore, he does not have the executive powers to do so. He must table it for sanction by the Board of Trustees.
Samy’s unilateral decision to disburse loans and contract in MIED is a blatant breach of trust and breach of fiduciary duty amounting to misfeasance of highest order.
The fate of MIC members is of no interest to me if they continue to blindly accept his mischief but the money collected to build AIMST and for MIED is, because the money was contributed by the Government and the public including myself.
I will be taking up this matter to the police and MACC tomorrow.
