Former MIC Youth chief SA Vigneswaran today accused MIC president S Samy Vellu of sanctioning unauthorised loans and contracts to his cronies using funds from the party's education arm, Maju Institute of Educational Development (MIED).

MIED is currently embroiled in a scandal with Samy Vellu describing its chief executive officer P Chitrakala Vasu as a 'thief' while she has accused the veteran politician of siphoning funds.

samy vellu and mic 160408 The matter is currently being probed by the police and the Malaysian Anti-Corruption Commission (MACC).

Adding more twists, Vigneswaran said the MIC president had committed a 'blatant breach of trust' when he allegedly awarded contracts worth RM305 million to crony companies.

Vigneswaran, who left MIC after a fallout with the president last year, said Samy Vellu had also authorised personal loans from MIED's coffers worth RM12. 8 million to several figures close to him.

What authority does he have?

"All the loans were provided on a one year repayment basis and were interest free," he said in a statement.

sa vigneswaran "The eligibility requirements for the approval of such loans, even if allowed, is by way of a resolution passed by MIED's board of trustees. Where does Samy Vellu derive his authority in sanctioning the unlawful financial assistance?

"He is not an executive chairman of MIED. Therefore, he does not have the executive powers to do so. He must table it for sanction by the board of trustees (which he did not)," he added.

Vigneswaran (right) also claimed that the appointment of MIC vice-presidents S Sothinathan and S Veerasingam to the board of trustees was done in a dubious manner.

He said the appointment of the two should be declared void as candidates could only be elected to the board and not appointed.

The former MIC Youth chief, who is a life member of MIED, said he was never served a notice informing him of any extraordinary general meeting or annual general meeting where voting should take place.

chitrakala_mied "None of the members were aware that we were supposed to elect members of the board of trustees until the Chitrakala - MIED fiasco came to the limelight.

"When I enquired with Chitrakala, she said she was under the impression that all members knew the procedure and were handled personally by Samy Vellu," he said.

Vigneswaran said he would file a report with the MACC tomorrow on this matter.