Maika Holding CEO S Vell Paari today refuted reports published in an online news portal and a Tamil daily that he had made huge financial gains as a result of getting a contract from MIC-run AIMST University.

He said that it was "a blatant lie to suggest that my father (MIC president S Samy Vellu) and I had siphoned out millions of ringgit out of AIMST University".

NONE He clarified that the contract which was referred to in the media reports were awarded to Maika Holdings subsidiary Maika Intellectual Resources Sdn Bhd (MIR) and not to him personally.

Vell Paari, who is also a director in MIR, added that the subsidiary company won a RM40 million ICT project in December 2002 for the university.

The contract was approved by MIC's educational arm Maju Institute of Educational Development headed by Samy Vellu.

"As MIR's proposal was the most attractive, the ICT contract for Aimst University was awarded to MIR.

"MIR in turn like any other main contractor invited various subcontractors to bid and accepted the bid by Doxport Technologies (M) Sdn Bhd for RM36 million," he said today.

He added that by sub-contracting the project, MIR made a 10 percent profit margin.

"I must stress that the contract was never awarded to me but to a subsidiary of Maika.

"Is it wrong of me to get business for Maika Holdings? In any business a 10 percent profit margin is a minimum market norm," he added.

All papers are in order

He further said that at the beginning of 2004, project managers of AIMST University were unhappy with the progress of the ICT works by Doxport and had recommended to MIED to replace Doxport.

As a result, he added that MIR abided by the project managers recommendation and terminated Doxport and carried out the job by itself directly.

"At the same time, MIR also gave approval to MIED to make direct payment to its sub-contractors so as to progress the job faster.

"Only the profit portion was paid directly to MIR. So, there was transparency and all our payments were certified by the quantity surveyors, project managers and independent engineers of MIED's bankers," he added.

He added that the then CEO of MIED Chitrakala Vasu was aware of all the documents pertaining to the projects and costs involved.

"All the documents were given to her by the senior management of MIR for her scrutiny and knowledge. This was done so that MIR or MIED in the future would not be accused of any improper and unprofessional conduct," he added.

He also said that all pertinent documents relating to the MIR contract have also been handed to the Anti-Corruption Agency (now MACC) and the Bukit Aman Commercial Crime Department due to the various reports made by various parties.

"So, if I had done anything criminal in nature, I am sure they would have picked it up in the course of their investigation," he added.

Will not take court injunction

Vell Paari was responding to an article published in Malaysia Today on Monday and picked up by Makkal Osai today regarding claims that he had personally benefitted from the contract awarded to MIR by his father through MIED.

He added articles appearing in Malaysia Today were always based on hearsays and was irritated when Makkal Osai picked it up with pure political motivation.

" Makkal Osai just wanted to sway votes by using deceits for the coming party polls this Saturday for their leader," he said.

He however said that he will not be seeking a court injunction stop Makkal Osai or any other publications from publishing malicious lies about him.

"I will not resort to gag orders which would effectively detract from my personal view that the public is entitled to both sides of the story and let the public decide," he said.

Vell Paari has been under continuous attacks from his detractors over the failures of Maika Holdings. Recently he has been slapped with an injunction by former deputy president S Subramaniam to stop him from blaming Subramaniam for Maika's failures in paying off its investors.

Subramaniam, who is Samy Vellu's nemesis, is contesting for the deputy president's post which is currently held by president's man G Palanivel.