Maju Institute of Educational Development (MIED) chief executive officer P Chithrakala Vasu has accused MIC president S Samy Vellu of inculcating a culture of fear within the party and its education institutions resulting in mismanagement.

MIED is the education arm of MIC, which is currently embroiled in a scandal and the subject of an investigation, with Samy Vellu and its CEO trading allegations.

p chithirakala on mied 280209 03 Speaking to Malaysiakini last night, Chithirakala also attacked the party's vice-president, S Veerasingam over his statement that MIED is allowed to give out study loans.

Describing Veerasingam as Samy Vellu's 'stooge', she said no one was willing to respond to what she had alleged until now.

"Veerasingam claims to be a MIED board member when he issued a statement that the institute is allowed to give loans.

"Let me emphasise that Veerasingam's claim that he is a member of the MIED board of directors was incorrect as he is not. Nobody resigned from the board and the board has not been meeting since 2003. So how can Veerasingam say that," she scoffed.

S Veerasingam In view of this, she said Veerasingam ( left ) had no right to claim MIED is allowed to give loans, when in fact it was wrong for the institute to do so.

Echoing in agreement to what former MIC Youth chief SA Vigneswaran had said on Monday , Chithrakala, who has helmed MIED for 14 years, said the fact remains that the institute is not allowed to give out study loans and it has no money lending license to collect payments.

"I have brought up this matter many times with Samy Vellu but he brushed it aside saying he will handle it," she said.

"The fact remains according to MIED's Memorandum and Articles of Association (MAA) the institute is only allowed to give scholarships and grants and not study loans.

“Many of the MIED board members know about this, but they chose to keep quiet as they are afraid of Samy Vellu." she added.

RM100 million given out in study loans

Yesterday, Veerasingam defended MIED, saying that it had every right to award study loans.

Veerasingam said the provision of financial assistance by way of loans is well in line with the objectives of MIED, which receives and administers funds for education. MIED is the leading provider of study loans to students from the Indian Malaysian community, who have been able to pursue their courses because of this aid.

This is contrary to the view of Vigneswaran, who had claimed on Monday that MIED is only allowed to give scholarships and grants and not study loans.

sa vigneswaran Vigneswaran, who also alleged that MIED had no money lending license to charge interests, said close to RM100 million in loans had been given out to approximately 10,000 poor students.

Meanwhile, the MIED CEO also pointed out that when MIED decided to give out loans despite not being allowed to do so, the task of drawing up the loan agreement was given to the law firm of SP Vaideveloo and Co, which is owned by Samy Vellu's brother.

Chithirakala said when there were loan defaulters, she alerted lawyers from the firm that MIED had no right to give loans or collect interest payments, however the lawyers would say 'hide the MAA'.

"I was the blue-eyed girl in MIED when I followed Samy Vellu's instructions but once I went against him in disclosing such wrongdoings, the MIC president went all out against me. Such is the stranglehold that Samy Vellu has in MIED and MIC," she claimed.

Chithirakala said most of MIED's education projects had resulted in failure and wastege of money including Kolej Tafe and the rest.

She said the Asian Institute of Medicine, Science and Technology (Aimst) University, which is 100 percent owned by MIED would also be another failure.

Samy's nephew runs Aimst bursary

The MIED CEO said Aimst bursary is run by one of Samy Vellu's nephew, who is the assistant bursar. She noted that no one had been appointed as bursary.

samy vellu exclusive on tamil schools 080708 05 "He is a diploma holder in accounting and he cannot balance the books. If a student was to ask him how much he owed, he cannot give a figure," she said.

"MIC and AIMST university staff know the problem but they cannot do anything as the assistant bursar is untouchable as he is related to Samy Vellu," said Chithirakala.

Chithirakala said as a result of this, MIED could not submit its accounts to be audited since 2003, and the problem is wholly attributed to Aimst accounts.

"As a result of Aimst accounts not being able to be balanced, MIED could not submit its accounts. This is a recurring problem and cannot be rectified if Samy Vellu remains. Such is the scenario within MIC and its educational affiliates," she said.

Chithirakala, has for the past month been on the warpath against Samy Vellu, who had accused her of misappropriation of funds and missing contract documents.

She in turn had lodged two police reports on Feb 28, disputing all claims of misdeeds.