Shah Alam MP Khalid Samad today urged Selangor Islamic Council (Mais) chairperson Mohd Adzib Isa to explain how the council had allowed a lopsided agreement which easily put RM8 million a year in the pockets of an Umno man, to the detriment of tertiary students.

azlan At a press conference today, Khalid said Mohd Adzib must explain this is because Mais is the sole owner of Kolej Universiti Islam Selangor (Kuis).

Kuis is now locked into a contract to pay an exorbitant RM15.4 million a year in rent for 33 years for the use of hostels to a company owned by the Selangor leader.

Malaysiakini  has withheld the leader’s identity pending his comments.

“How did Adzib allow this? Umno through Sulaiman (name withheld) had purportedly acted for Malay welfare, but in fact took advantage of the mostly Malay Muslim students,” he said.

The Umno man and his wife own a majority of the company which is paid RM15.4 a year, while the remainder is owned by a listed company.

The company had constructed the hostels for RM96.1 million and signed the deal with Kuis in 2007.

The details of the agreement were revealed by PKR director of strategy Rafizi Ramli on May 2, following complaints of high fees from students. 

Umno man ‘deserves nothing’

According to Khalid, to remedy the situation, the Umno man should relinquish his shares to the listed company, as it was the latter who had invested the RM96.1 million for the construction.

He added that the shareholdings indicate that the listed company is reaping about RM6.5 million a year from their investment, which is a “reasonable return on investment over 15 to 20 years”.

Following that, Khalid urged the listed company to review the agreement with Kuis so that the annual rent paid would be only about RM6.5 million and not the RM15.4 million paid now.

“I am urging (the Umno leader) to give it up. It’s enough for you to have gotten millions for the past years. Get out (of the company). You did nothing and you deserve nothing,” he said, likening the man to a “parasite”.

The MP added that the present agreement continue to weigh heavily on Kuis, and is threatening the college’s bottom line.

“If Kuis continues like this it will need to close down in two or three years,” he said.

He said the renegotiation of terms is a more favourable outcome than having another agency come in to save Kuis, as speculated.

“The market talk is that people want Tabung Haji to come in to salvage the situation (by buying over  the company owned by the Umno man and the listed company) but that will mean Tabung Haji foots the losses,” he said.