It has been two years since MIC's ailing investment arm Maika Holdings held its last annual general meeting, and shareholders are vexed over the management’s silence on the matter.

The company, which was initiated in 1982 to enable Indian Malaysians to have an increased equity in the country’s economic growth, had raised some RM106 million within two years despite the global financial recession at the time.

The money came from 66,000 investors, who were predominantly estate workers.

However, the investment company had failed miserably with little returns from its business ventures and submerged in countless allegations of mismanagement and corruption.

Speaking to Malaysiakini , two investors S Nadarajah and M Jayashangker demanded answers as the deadline for the next AGM will expire on June 30.

maika holding shareholders meeting 300807 fight Their last meeting with shareholders in 2007 made headlines, when all hell broke loose - investors who demanded clarification were dragged out of the meeting and manhandled by the company's security personnel.

"The last AGM was held more than two years ago. After that there was no AGM and shareholders are in the dark as to what is happening in the company," lamented Nadarajah, 50.

The management consultant said Maika has not held an AGM to brief its shareholders on the company's status while the Companies Commission of Malaysia (CCM) has also failed to compel the company to convene soon.

'Better off without investing'

"Every time they have an AGM... it is (just) symbolic (as nothing is resolved) and they have questionable auditors.

maika shareholders 080609 s nadarajah "A lot of questions were raised but there are no answers... (all our queries) were bulldozed and (not answered) because they (shareholders connected to MIC) have the majority and all that," said Nadarajah ( photo ).

Nadarajah, who had invested RM1,000 in 1985 and given bonus shares worth RM250, now only wants his initial investment to be returned.

Meanwhile, Jayashangker, who invested RM500, said: "When you invest in a company, the objective is for you to get dividends or to go for listings... the primary objective is for us to get a banking licence.

"Today, the shareholders are worse off... we would have been better off without investing. The company is quite a viable company, one primary reason is that they have a very good (asset) which is Oriental Capital Assurance Bhd (OCAB)."

He said having S Vell Paari – MIC president S Samy Vellu's son – as the chief executive officer of the company also raises suspicions about the company's dealing and investments.

"There have been very capable leaders (but) if you cannot get along with the Samy Vellu family, you are kicked out and that is what happened... and this group (the Samy group) is conspiring to do something," he said.

To resolve the imbroglio, Maika had planned to sell OCAB, its only remaining 'cash cow', for RM129.8 million to engineering firm Salcon Bhd.

However, Nesa Cooperative - linked to former MIC deputy president S Subramaniam - obtained a court injunction against the sale. Nesa owns 625,000 shares in the company.

The injunction was obtained as Nesa believed that the approval was not properly gained due to the manner in which the 2007 AGM was conducted and outlined several important measures to be undertaken.

'Government must intervene'

maika shareholders 080609 m jayashangker and s nadarajah 02 Tired of the situation, Nadarajah and Jayashangker want the government to intervene in order to salvage what is left from the failed venture.

"Basically we want, either the government to intervene or some kind of judicial administration... have professionals to see how to turn the company around or liquidate the company... and bring those who have actually done wrong to face the music," said Nadarajah.

"A regulatory body (is not enough) to solve the issues... I think there is enough skeletons in the closet. The primary audit was actually done by Ernst and Young, the second audit or the subsidiary audit is actually done by some auditors who are also involved or closely linked with MIC itself.

"There are 60,000 shareholders in this company, one of the largest number of shareholders ever in a Malaysian company, and all of them have the same questions on their minds: what is happening to the company? Why are their investments totally worthless? But nothing has been done to address their questions."

Nadarajah added that if Maika had succeeded in its investments, it would have been able to raise at least RM3 billion by now.

Maika CEO: AGM by August

When contacted, Maika Holdings chief executive officer Vell Paari clarified the reason for not holding an AGM, stating that it was tied to the court case filed by Nesa Cooperative.

"They have gotten an injunction against Maika for selling the insurance company and from not pursuing with all that was approved at the 2007 AGM.

vell paari vellpaari "We have asked the court to allow us to hold an AGM so that we can close the books for 2006 and continue with the sale of Oriental Capital Assurance," he said.

He added that the matter will come up for hearing on July 3.

"We hope the court will grant us permission to hold fresh AGM, pending which we will hold one either at the end of July or early August," he said.

Vell Paari also said that at the fresh AGM he would be proposing the sale of the insurance firm to a new bidder, who has made a better offer.

Maika's previous offer of RM129 million to Salcon Bhd was rejected as a result of delays caused by the court case.

He added that Maika has suffered further losses in the two years as a result of paying interests for its debts and overhead operational costs.

He hoped that the new offer would allow Maika to return what was due to the shareholders.