The embattled CEO of MIC's education arm P Chitthirakala Vasu has gone on leave pending an internal probe into alleged wrongdoings in awarding contracts, sources said today.

They added that the day-to-day affairs of the Maju Institute for Education Development (MIED) will now be overseen by another senior manager, Mumtaj Begum.

"And MIED managers are under strict instructions to liaise with MIC vice-president S Sothinathan on all matters," they further said.

Sothinathan, they pointed out, was recently appointed as a director of MIED by party president and MIED chairperson S Samy Vellu.

At the same time, it is believed that an auditing process will be undertaken soon to check the accounts of MIED.

chitrakala_mied Sources are saying that while Chitthirakala wanted very much to defend herself against allegations of being involved in contract irregularities, she was advised by external auditors to be away on leave while a probe into the irregularities was being carried out.

"She was not forced to go on leave pending her sacking. She was advised that it was for her good," added internal sources.

They claimed that Chitthirakala was resigned to the fact that her fallout with Samy Vellu and the appointment of a three-member panel was meant to justify her removal.

"She wants to fight back and clear her name. Her hope now is that the auditing into MIED accounts will reveal the true nature of the scandal affecting the education arm.

"And she is also hoping that the auditing investigation will show the trail of instruction on the awards of all MIED contracts as well as the identity of persons who had personal interest in such awards," added the sources.

CEO was following instructions

It is also reliably learnt that certain personalities in the party had removed some files from Chitthirakala's office in the hope of covering up any high-level involvement in the awarding of MIED contracts.

"We now hope that the proper auditing investigation will also indicate this discrepancy," added the sources.

The internal sources do agree that Chitthirakala would have to bear responsibility for "following instructions" in awarding some of these contracts.

"But to blame her wholesale for any financial irregularities is totally unfair," they said, adding that they were hoping that the auditing will particularly look into the awarding of two recent contracts for grass-cutting and security at the MIC's AIMST University in Semeling, Kedah.

The university is managed by MIED Capital Sdn Bhd, a purpose-built subsidiary of MIED.

samy vellu exclusive on tamil schools 080708 06 On Jan 2, Samy Vellu convened a MIED board of directors meeting and set up a panel to investigate the alleged misappropriation in the award of contracts by MIED.

Sources said the panel was instructed by Samy Vellu to look into the awarding of contracts claimed to have been given out by MIED top management at an inflated value.

They added that Samy Vellu also questioned the huge debt amassed in the running of AIMST University, with him blaming MIED top management for this situation.

The three-member panel is headed by former party treasurer KS Nijhar, along with deputy president G Palanivel and party disciplinary committee chairperson G Vadiveloo.

The panel has not started its probe yet and it is learnt that they are awaiting the completion of the auditing of MIED's accounts.

MIED and party insiders are worried that the panel's main task was to remove Chitthirakala.

They are of the view that a thorough and just probe by an independent panel would arrive at a finding which would be very detrimental to the party, especially its top leadership.

The new CEO

AIMST University was officially opened last year and its cost has increased from RM230 million to almost RM500 million now. The funding for the university largely came from donations given by MIC members and the public.

Party officials remained mum when asked to comment on the matter.

Party insiders believed that Mumtaj, who studied economy, will eventually be asked to head MIED after the formalities of removing Chitthirakala.

Mumtaj, in her 30s and from Sungai Siput, has been acting as Chitthirakala's deputy until now.

"She is someone whom Samy Vellu trusts. He funded her education and he knew her father who was a party leader in Sungai Siput. Mumtaj had also worked for Samy Vellu during previous general elections in Sungai Siput," said a source.

The source added that there was more to it than just the issue of 'inflated contracts' for the fallout between Samy Vellu and Chitthirakala.

"I would even say some of these issues are quite personal. Chitthirakala was also someone whom the president trusted and liked very much," he added.

Samy Vellu or MIED have not made any official comment on the panel or on Chitthirakala's status. He is expected to make a statement upon his return from attending an Indian diaspora meeting in India tomorrow.