S.A.VigneswaranChairman, Malaysian Indian Youth Development Foundation (MIYDF)

By SALINA KHALID

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 27^th March 2009 after I requested a copy from MIED’s Company Secretary through my solicitors on 5^th 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.

The reality of disbursements in MIED

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)

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

________________________________________________

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.

G Krishnan | Jul 3, 08 4:10pm

I refer to the Malaysiakini report MIC Youth chief quits party.

Understandably, the recent events surrounding Anwar Ibrahim has overshadowed much of the other headlines in the news. I wanted to, however, not let go without some commentary the fact that the MIC Youth chief, SA Vigneswaran, had quit his post and membership in the party.

Vigneswaran has apparently become dispensable to Samy Vellu and was being pressured to quit his party post. I quote:

‘Once seen as a blue-eyed boy of the president, his fortunes continued to tumble when Samy announced wide-ranging reforms in the party, a move that could sideline Vigneswaran further.

‘The final straw came when Samy announced that Vigneswaran should step down from being the youth chief as he had exceeded the party constitutional age limit of 40.

‘Vigneswaran, who is 42, refused to do so, on the grounds that he was elected and he would finish his term which would expire next year.’

The report also notes that Vigneswaran called on Samy Vellu to ‘relinquish’ the post of party president. As you may know, Samy has actually expressed a desire to continue as party president for another term.

Vigneswaran, let me welcome you to the other side of the track where the majority of Indian Malaysian reside and opt not to be subjected to the repugnant and obnoxious manipulators within the party.

Yes, I’m glad you saw the light and walked away from the tentacles of the debilitating world of Samy Vellu, the world where we are free from the abuses and exploits of a ‘gangster-style’ self- consumed president.

I say, better late than never. Yet, I have to admit, what surprises me is why it seems to take individuals like you so long to recognise the obvious! Well, let’s not dwell on that issue.

I must, however, make a plea to you to help raise further awareness and to speak out against the kind of debased politics that seem to have contaminated the highest office of the party.

As citizens, we have an obligation to speak out. As you have made clear, you desire to continue to work for the advancement of the Indian community in the country. I commend you for your commitment.

I also urge you to ‘educate’ your fellow Malaysians about the problems that plague your former political party. Mind you, I am not one who, by any stretch of the imagination, feels invested in the MIC.

I would prefer to see it self-destruct. I know we Indians would be better served without it. And that is why I call on you and all other self-respecting present and former MIC members to join hands and educate your fellow Malaysians why they have no future by investing their energy and resources in such a party.

Unless you and others like you speak out more regularly and vociferously – and as we have also seen from recent unrelated events surrounding Anwar Ibrahim – the more things change, the more they will stay the same.  Source : Malaysiakini