Maika Holdings raised RM108 million in 1981 from Indians, especially
rural folks from the lower- and middle-income groups. These people were
told to use their life savings – and even sell their jewelry – to invest
in Maika Holdings because they were told the company would give them
returns that were 10 to 20 times their initial investment. This, of
course, is sweeter an offer than any licensed bank could make.
Samy
Vellu, whose rhetoric needs no introduction, managed to fool these
mostly not-so-well- educated individuals into parting with their money.
If
you ask anyone who was in MIC at that time about how they organised
groups of people to go out there to convince the masses to part with
their money, you will be surprised. They even went to the extent of
telling would-be investors to sell their properties and cattle to invest
in Maika Holdings.
In other countries, this would have been
considered a huge financial scandal, not just because of the amount of
money involved, but because of the number of people involved in fleecing
equally vast numbers of poor and less-educated citizens.
The
RM108 million then had a buying power that was 10 to 15 times its value
today. In today’s terms, it would be valued between RM1 billion and
RM1.5 billion. Shortly after the initial investments were collected, the
recession in the mid-1980s enabled the cash-rich Maika Holdings to go
shopping for properties and collect fantastic deals.
If those
properties were still in the hands of Maika Holdings, the company would
be worth some RM3 billion to RM5 billion today. But those properties
were sold at below-market prices through shady deals in which more money
was transferred under the table than through actual and legal sales
agreements.
Some of us may also remember the Telekom shares
scandal, in which Maika Holdings was extended an offer to buy Telekom
shares during its initial public offering (IPO). But Maika Holdings did
not buy the Telekom shares. Instead, Samy Vellu bought them through his
personal company, because Maika Holdings, supposedly, did not have the
money to do so.
Maika Holdings could have made RM30 million, but
this opportunity was hijacked by the sole defender and representative of
the Indian community.
Telekom was only the first privatised
government department. Since then, many other government agencies and
departments have been privatised. As with Telekom Malaysia, shares were
offered to Maika Holdings, but the offers were hijacked over and over
again by Samy Vellu and his gang.
Using the Maika Holdings money,
the gang bought into well-run companies and turned them upside down by
appointing their own people to run these companies, squandering away the
profits with luxurious parties and lavish parties, and, finally, by
closing down these companies. They plundered in epic proportions.
To
date, Maika shareholders have received almost nothing for their
investments. The Maika Holdings scandal has cost many their life
savings, property, opportunities to send their children for advanced
education and so much more.
Recently, during a political speech,
Samy Vellu announced that he will return RM1.30 for every RM1 invested
in Maika Holdings and set a deadline of 100 days to do so. At the end of
the deadline, however, he conveniently turned around and said that he
has nothing to do with Maika Holdings because Maika Holdings is a
business enterprise and he is only the president of MIC.
The
managing director of Maika Holdings, Vel Pari, the son of Samy Vellu,
then said that he did not know of any such deadline and, as such, is not
bound to honour any kind of commitment.
Those who had the courage
to go to Maika Holdings’ annual general meeting last year were met by
thugs who intimidated and harassed anyone who raised questions about the
management. Death threats and armed assaults are not uncommon at Maika
Holdings’ annual general meetings.
No wonder the MIC is
considered the most violent political party in Malaysia with two MPs
shot dead by assailants in recent years, one or two knocked down by cars
(in what are supposed to be accidents) and some even slashed by
parang-wielding gangsters.
But Samy Vellu and gang have been
allowed to continue plundering Maika Holdings without any
accountability. And they were never questioned by the government, Bank
Negara, the former prime minister or even the present prime minister.
The
MIC’s handling of Maika Holdings was a con job approved and blessed by
the highest public office. Perhaps it’s because Indians are the
disenfranchised lot in this country that Samy Vellu can do anything, as
long as he delivers the votes every election.
The government's
total apathy regarding this scandal shows its attitude towards Indians –
we are nobody's children. This injustice – this lack of government
oversight – is happening in Malaysia, a country that is, supposedly, a
leader among developing countries and is supposed to be a ‘developed
nation’ in 12 years.
If the government is serious about showing
its commitment to the Indians, start by asking Samy Vellu to step down.
Get Maika Holdings cleaned up and bring to justice those who have been
responsible for cheating its shareholders.
Don't be so stupid as
to think that all we want are a few temples to be left in a few squatter
areas. We know that as long as they are in squatter land, they will
have to go. And repairing a few Tamil schools in some estates is like
throwing us table scraps.
Show us that the government cares about Malaysian Indians as equal citizens who are entitled to equal protection under the law.
1 comment:
Thanks for sharing this awesome blogs..
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