updated 6.45pm There seems to be a ray of hope for some 66,000 Maika Holdings shareholders if the government steps in and saves the RM160 million asset-based company , says former president of the Malaysian Associated Indian Chambers of Commerce & Industry (MAICCI) and shareholder, VKK Teagarajan.

Teagarajan is proposing that the government's takeover of Maika be done through a special vehicle company of Khazanah that would help the Indian community's economic future.

maika holdings berhad He said that the MIC president S Samy Vellu's blame game hitting the front pages of the Tamil newspapers today is not going to help the Indian communities who have invested thousands in the company.

"Selling the Maika's RM160 million together with the insurance company, United Oriental Assurance and the land bank is an opportunity for the Government to help out through a special vehicle that was announced during last year's budget.

"It was reported that the government had set aside RM300 million to assist the Indian community.

"It is to my dismay and many others, I find the leaders of MIC who have worked so hard to setup Maika Holdings Bhd for the Indians are today proposing to sell its cash cow asset, United Oriental Assurance, the last financial institution belonging collectively to the Indian," Teagrajan added.

Paying back shareholders

Tamil newspapers have reported that Samy Vellu wants to sell UOA to pay back the shareholders but former deputy president S Subramaniam wants transparency in the sale and a higher price for the financial asset .

"Although their intentions are good and honourable, but I feel that a better solution would be to seek government assistance and to inject funds to revive Maika Holdings and benefit the 66,000 shareholders."

vkk teagarajan Teagarajan's (left) response seems to be is in line with the government's plans which were made during the tenure of former prime minister Abdullah Ahmad Badawi.

The budget had proposed specific ways and means to address to the socio-economic problems facing the Indians.

Following the budget proposals, it was reported that the EPU had allocated RM300mil for the betterment of the Indian community.

Teagarajan reiterated that Maika Holdings is not a "dead horse" as pointed out by Samy Vellu.

He said that, "It is in fact worth RM160 million in assets, combining the asset value of UOA Bhd and the balance of prime land from the sale of Tumbuk Estate estimated at around 125 acres".

Protecting community's largest asset

A prominent businessman, Teagarajan said the infusion of RM160 million to revive and protect the Indian community's largest asset would be seen as a move in the right direction to win back the lost Indian voters.

In addition, he said the government should revamp Maika through due diligence and prudent management policies for a better rate of investments.

samy vellu maika holding 181106 With this injection of new funds, the so called ‘poor' Indians who have a stake of RM50 million can be paid off and the rest maintained as share capital.

"There is a large pool of talented and top notch Indian management expertise available for the government to tap and lead Maika Holdings in the right direction towards economic prosperity.

"Through such government actions, the Indian community will be able to maintain the only financial institution in their possession."

He added that the allocation of 5 to 10 percent of government infrastructure projects such as highways, bridges, schools, hospitals allocated to the revamped Maika Holdings will be an economic boost to the company.

He also said, "This injection of funds could be converted to a RM1billon company if prudently managed under Khazanah's supervision.

New shares can be allocated to low income group Indians to increase their investments to fulfil the government's economic aspiration to increase the economic pie of the Indian community from 1.1 percent to 3 percent in the near future."

Teagarajan also called upon other economic planners and strategists to make suggestions and viable plans that would benefit the Indian community.

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Doing the best for the shareholders

Maika Holdings chief executive officer S Vell Paari, when contacted, however said the idea to form a special-purpose vehicle to save Maika was not a new one.

"I have made this proposal about seven months ago . The reason for us in wanting to sell the insurance company is to repay our shareholders," he said.

velpari sujatha murder case 160309 02 "One thing that people must realise is that the reason we are making arrangements to pay back is because of the requests from the shareholders.

"We have so many people just pointing fingers at us without making any concrete efforts to solve the problems.

"And when we try to solve the problems, they start to criticise us," he added.

He also denied that MIC president Samy Vellu had called Maika Holdings a "dead horse".

"It is surely not a dead horse. It still has much potential. However sadly we have been held back by the court injunction obtained against us by a big shareholder.

"If we had proceeded with the sale of our insurance company in 2007, we would be sitting with a huge cash balance which we could have utilised well in investments, especially in this current economic climate," he added.

He said that was a missed opportunity and his main task now was to look for a buyer so that he could repay all the shareholders.

He also urged politicians to stop using Maika Holdings as a punching bag "especially when we know that they are only Maika to gain support in the bid for party posts".