KUALA LUMPUR, Feb 28 — A former confidant of Datuk Seri S. Samy Vellu has alleged that MIC misappropriated a government allocation meant to help the hardcore poor in the Indian community.
The charge was made by P. Chitrakala Vasu, former CEO of MIED, the MIC’s education arm, at a dramatic “tell-all” press conference in Petaling Jaya today.
Chitrakala, who lodged two police reports in Subang Jaya today, turned up at the press conference with guns blazing, blaming Samy Vellu for a variety of ills faced by the MIC and the Indian community.
She told of how the party misused government funds to shore up support for party leaders, including Samy Vellu, in the runup to the MIC elections.
According to her, the party had asked the federal government for an allocation of RM120 million to be paid out over four years to help poor Indians, as voters from the community had stopped backing the Barisan Nasional government.
After the elections Chitrakala said Samy Vellu had instructed her to put up a paper and ask for government funds for hardcore projects to win over the Indians who had gone to the opposition.
“I prepared a paper outlining eight categories of hardcore poor needing urgent assistance,” Chitrakala said and “we asked for RM30 million a year over four years for the projects to be undertaken by the Yayasan Pemulihan Sosial or YPS”.
"The Prime Minister (Datuk Seri Abdullah Ahmad Badawi) was very happy with the paper and agreed to approve the funds. He open the MIC AGM and announced his approval of the funds,” she said.
However the Finance ministry wanted the YPS management team strengthened before payment was made. They wanted new people on the board, meaning fewer people beholden to Samy Vellu.
By the time the first instalment was to be paid out to YPS, Datuk Seri Najib Razak had become Finance Minister and wanted further “strengthening” of YPS.
He also decided not to give RM30 million at one go.
Instead instalment payments of RM10 million each was to have been paid out while a report was to be prepared before the next tranche could be released.
The first instalment of RM10 million was disbursed in December 2008.
But Chitrakala claims that the money ended up in the pockets of MIC branch chairmen and supporters of the incumbent leadership team instead.
By Baradan Kuppusamy
Chitrakala says the MIC president is now trying to blame her for all sorts of financial improprieties.
KUALA LUMPUR, Feb 28 — P. Chitrakala Vasu, the woman at the centre of a row with Datuk Seri S. Samy Vellu over missing MIED files and funds, has given the public a rare inside look into the dealings of the MIC president.
At a press conference today, she offered up a glimpse into how her former boss thinks, works and manages the millions that the government has allocated over the years to the MIC to alleviate Indian poverty.
But before opening the window into the world of Samy Vellu and his inner circle, Chitrakala said: “I am very scared of this man.
"He has got money, people. I am an ordinary person, I am very scared. He has got everybody with him; I don’t have anybody with me. But I thought going public is my best protection.”
She was once so close to Samy Vellu that she became the subject of gossip, suggesting she was having an affair with him.
“It is all lies but I was that close to him,” Chitrakala told the press conference at the crowded Lotus restaurant in Jalan Gasing, Petaling Jaya.
She said Samy Vellu was now going after her and trying to pin on her all sorts of allegations of financial improprieties connected with MIED, the MIC arm that operates the AIMST University and other colleges.
“MIED is worth RM1 billion compared to Maika Holdings which is worth zero,” Chitrakala said, adding that her relationship with Samy Vellu started to sour after the March 8 general election as he became suspicious of everybody around him.
“He felt very insecure after losing in Sungei Siput and losing as minister. Not being a minister anymore and without it he was a nobody. He knew his days were numbered and he would be challenged for the president’s post. So he got very insecure and saw enemies everywhere,” she said.
One of the issues that arose was the future of MIED which, being worth RM1 billion, was the jewel in the crown of the MIC.
But Samy Vellu saw MIED as a different entity and having nothing to do with MIC or the Indian community.
According to her, he knew he could lose as MIC president but he wanted control of MIED.
“He did not want to let go of MIED. He wanted to remain as MIED chairman and chancellor of AIMST University,” said Chitrakala.
“The way to do it was simple, he wanted MIED removed from MIC,” she said. “MIED is for Indians. He wanted to divorce it from MIC. Legally it can be done but morally it is very wrong.”
“I cannot let what happened to Maika Holdings happen to MIED. I told myself that I have no strength to challenge Samy Vellu on this but my husband supported me,” he said.
One of the first acts Samy Vellu ordered, and over which Chitrakala baulked at, was an instruction to remove former MIC deputy president Datuk S. Subramaniam as a director of MIED.
“After that Samy Vellu wanted to get rid of nearly everybody, all the 35 members of MIED. He even wanted to get rid of Palani (MIC deputy president Datuk G. Palanivel). He marked a whole list of people for removal and asked me to do it.”
Chitrakala told Samy Vellu he could not do it. “I said MIED is not MIC where he can sack and put in anybody he likes at his whims and fancy. MIED is governed by company law and he can’t do as he likes.
“He got very angry with me,” she said.
Then Samy Vellu asked her to move the MIED office out of the MIC building in Jalan Rahmat here to somewhere else.
“I also disagreed but I did not say no directly. I just delayed the matter. People visit the MIC office for MIED help. We are tied together, we cannot be separated physically,” she said.
“So this is the background of why we had a falling out and finally the crunch was he tried to force me to make payments to AMIST University contracts without proper documentations,” she said.
"Samy Vellu also asked me to make advance payment to contractors."
The fight between the two even got down to little things like the wording on the plaque unveiled when AIMST was opened by the Prime Minister Datuk Seri Abdullah Ahmad Badawi last year.
The plague had the words: Malaysian Indian Congress, MIED presents AMIST University to all Malaysians.
“A few days later Samy Vellu called and ordered me to remove the words Malaysian Indian Congress. I asked why and he said MIED was not linked to MIC.”
The following article is taken from The Malaysian Insider.
Samy Vellu in the case of the missing files and government funds
By Baradan Kuppusamy
KUALA LUMPUR, Feb 28 — The murky financial dealings of MIC were laid bare today after a one-time loyalist implicated Datuk Seri S. Samy Vellu in mismanagement of party funds and misappropriation of government money.
P. Chitrakala Vasu, who is at the centre of a raging row with Samy Vellu over the MIED financial fiasco, alleged today that up to RM2 million raised for tsunami victims in 2004 was transferred from government accounts to a party foundation controlled by the MIC president.
She also alleged that lorry-loads of files were removed from the office of MIED, MIC's education arm of which she was once the chief executive.
MIED had raised millions of ringgit from the Indian community, in addition to receiving about RM300 million from government sources and a loan of RM220 million from Bank Pembangunan Malaysia, which is outstanding, for the construction of the AIMST university in Kedah.
Today, Chitrakala made public two reports she made earlier in the morning in Shah Alam urging police to probe the whereabouts of the MIED files and also RM2 million in donations collected in 2004 for tsunami victims in Sri Lanka.
In her report, she claimed the RM2 million was deposited from the Works Ministry into the account of the Yayasan Pemulihan Social (YPS) of which Samy Vellu is chairman and Chitrakala the CEO. Samy Vellu was then the works minister.
“Some time in February 2008 (just before the March 8 election) Samy Vellu telephoned me and informed me that the Works Ministry Treasury would transfer RM2 million into the YPS account and asked me to place the money in fixed deposit,” she said in the report.
“He told me this money was for the people of Sri Lanka but since it was not used he was transferring to YSS for later use,” she said.
"The money was put in a CIMB fixed deposit account and was still there when I left on Jan 2, 2009,” she said in the report, adding that she was making the report to prevent Samy Vellu from using the money for any other “unauthorised purpose”.
She also fears she might be blamed if the money when “missing”.
In the second report, she urged police to investigate “missing” MIED files and gave details of a heated confrontation she had with Samy Vellu in his office on Dec 31, 2008 in the presence of MIC vice-presidents Datuk S. Veerasingham and Datuk S. Sothinathan.
“A heated argument broke out after Samy Vellu made baseless accusations and I told him I will see him in court but he replied court is not the place,” she said in the second report.
In the report, she said Samy Vellu allegedly told her that he would "make sure the police arrest and embarrass you”.
“Soon thereafter I was slammed with five show-cause letters and more followed after this,” she said.
“After I left on Jan 1 without even taking my personal belongings I learned lorries were used to remove files from the MIED office and taken to an undisclosed location on orders of Samy Vellu,” she said in the report.
At the press conference, Chitrakala said the police must investigate how so many files had gone missing and why she is being blamed for it.
“What secrets these files hide?” she asked.
“This is only the first part… there is more coming,” a defiant Chitrakala told a press conference at a restaurant here today.
“I was followed, photographed, harassed and threatened in the days leading to this press conference,” said a visibly angry Chitrakala, 38, who is married with four children.
Even major newspapers considered close to Samy Vellu were not invited to the event for fear the news would be leaked and she could be waylaid or the press conference somehow scuttled.
“He pushed me to the wall, he asked for this (revelations). I worked hard for him and protected him for 14 years but in the end he came after me and pushed me to the wall,” Chitrakala told The Malaysian Insider before the press conference.
“I am not afraid of him… I know the truth behind him,” she said, adding all the accusations Samy Vellu had made against her over the missing MIED files and for involvement in corrupt deals were false and designed to shatter her.
“He has to answer not me,” Chitrakala said, breaking down in tears at how she and her family now feared for their lives.
“He is powerful, he is big… we are nothing. But we have the truth, the people behind us. That’s why I am going public. The people have a right to know,” she said.