MIC has been rocked by a scandal involving its education arm, Maju Institute for Education Development (MIED), over alleged irregularities in the awarding of contracts for maintenance of the party-run AIMST University. Sources said the trouble started when MIED was instructed to revoke two contracts given out based on an ‘open tender’ system. Instead, its managers were told to reassign these to persons close to MIC president S Samy Vellu.
The two contracts were respectively for grass-cutting services and to operate a canteen at the university. Sources said the sum quoted by the new parties - one of whom is based in Ipoh - was considerably higher than that in the bids already accepted.
The contracts were among five awarded by MIED for various services last year.
Heads are expected to roll - in fact, the summary dismissal of party treasurer M Mahalingam two weeks ago is said to be one outcome, although Samy Vellu had attributed it to “routine change”.
On Dec 23, Mahalingam also had to relinquish his post as chairperson of MIED Capital Sdn Bhd, the company that runs the AIMST University located in Semeling, Kedah.
Insiders said the situation over the contracts has pitted Mahalingam and MIED chief operating officer P Chitthirakala Vasu against Samy Vellu.
It is learnt that both were unhappy with the manner in which they were forced to re-issue the contracts, and had repeatedly raised the matter with Samy Vellu.
Chitthirakala is said to be under pressure to submit her resignation as well, but has refused to do so. She has told close friends that she will fight Samy Vellu “until the truth in known”.
“This is an explosive matter. The president is worried that this matter will be used against him in the party polls later this year and has decided to act against the duo,” said a source.
Both MIED and the university are the brainchild of Samy Vellu, set up to educate children from the Indian Malaysian community. He exerts strong control over both institutions, as he is also chairperson of MIED.
The university was officially opened last year but its building and operational costs have ballooned from RM230 million about five years ago, to almost RM500 million now. It is largely funded through donations by MIC members and the public.
Sources said Samy Vellu has questioned the huge debt amassed in running the university, and that he has blamed the MIED top management for this.
Mahalingam and Chitthirakala were once considered to be close associates of Samy Vellu. Chitthirakala had even written a glossy coffee-table book on Samy Vellu, heaping praise on the veteran leader’s leadership and humanistic qualities.
Panel set up
Samy Vellu has since set up a three-member panel to investigate the alleged irregularities in awarding three of the five contracts, which he claimed had been given out at an inflated value.
Details of the three contracts are not known, but the probe will not cover the contracts awarded for the grass-cutting services and canteen operations.
The panel is also expected to look into why the cost of constructing the university had increased.
Set up following a meeting of the MIED board of directors last Friday, the panel is headed by former party treasurer KS Nijhar (right). The other two members are deputy president G Palanivel and party disciplinary committee chairperson G Vadiveloo.
All three of them are considered to be Samy Vellu’s loyalists. Athough Nijhar and Palanivel had a fallout with Samy Vellu recently, insiders said that they are back in his good books.
The sources also said that Mahalingam, who had attended the meeting, had asked the panel to investigate the two contracts given to companies linked to Samy Vellu.
Sources, however, see the sole purpose of the panel was the removal of Chitthirakala.
“The panel is in place so that Samy Vellu is not implicated in the (alleged) financial irregularities of MIED. It is not just a witch hunt against the top people in MIED, but also to clear Samy Vellu of wrongdoing,” said a source.
Insiders said that a thorough and just probe by a truly independent panel would arrive at a finding which would be very detrimental to the party, especially its top leadership.
‘President’s instructions’
Party officials remained mum when asked to comment. However Nijhar confirmed that he is heading the panel and is currently going through certain documents.
Mahalingam and Chitthirakala were not available for comment but close aides of Mahalingam said that he is confident of clearing his name and that he is willing to face the panel.
“He has said that he has nothing to hide and that he had only followed the president’s instructions,” said an aide.
“Mahalingam (left in photo) has also urged Samy Vellu to hand over the matter to the newly-established Malaysian Anti-Corruption Commission, but the president wants the matter to be probed internally.”
Samy Vellu has been in control of MIC for almost three decades now, but has said he will hand over the reins to his deputy at the end of this year.
Despite MIC’s abysmal performance in the last general election - Samy Vellu and almost all the top leaders lost their seats - the veteran politician has continued to keep a tight grip on the party.
During his tenure, MIC has experienced several controversies, including the missing nine million Telekom shares allocated to the Indian community through the party.
His other brainchild - Maika Holdings - has failed to help the community. Its 66,000 investors have not received returns for their RM106 million investment after 25 years.
K Kabilan
malaysiakini
05/01/09
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