PKR national strategy and policy bureau secretary S Gobikrishnan has revived allegations of a 'sweetheart deal' between MIC-owned Aimst University and MIC's investment arm Maika Holdings by showing a document that “supports” the claim.

At a press conference today, he said a statutory declaration (SD) by P Chithirakala - the former CEO of MIC investment arm Maju Institute Educational Development - shows that Maika Holdings subsidiary Maika Intellectual Resources Sdn Bhd (MIR) had been awarded a RM40 million deal through "direct negotiations".

Reading from the SD, Gobikrishnan noted: "Vell Paari, son of (then MIC president S) Samy Vellu is the CEO of MIR.

“They received a contract of RM40 million through direct negotiations with Samy Vellu... We had a tough time managing MIR as they had no expertise or competent staff.”

“It’s a father-son deal,” he added on the SD signed on Dec 8, 2009.

The SD further notes that subcontractors were not paid resulting in “chaos”, but this was rectified through negotiations with Samy.

Citing two letters of award shown to Malaysiakini , he said that MIR was awarded the RM40 million contract on Dec 30, 2002, only to subcontract it lock stock and barrel to Doxport Technologies Sdn Bhd for RM36 million on Jan 3, 2003.

He said this “immorally earned” RM4 million in a week.

“This means the work can be done for RM36 million, thus what is the rationale of awarding it at RM40 million?” he asked.

He said former PKR MP S Gobalakrishnan had also lodged a police report on the matter in 2009, but the MP did not have documents to support his claim.

“Vell Paari’s answer (then) was also unsatisfactory,” he said.

The MIC central working committee member had then denied the allegations.

‘MIR belongs to Maika, not me’

Speaking to Malaysiakini today, Vell Paari reiterated his denial, and added that any gains made by MIR would have benefit Maika Holdings, and not him personally, as MIR is a wholly-owned subsidiary of Maika Holdings.

He added that the contract was subcontracted to several subcontractors and that payment claims by subcontractors were made to and paid out by Aimst.

He also denied that it was a “father-son direct negotiation”, claiming that there were other companies considered.

“I never had any direct negotiation with my father. Direct negotiation was on the project manager side, that is TMI Consultancy headed by Thasleem Mohamed Ibrahim,” he said.

“I know (Aimst) was talking to one or two other parties, and we came out cheapest.”

He said that TMI Consultancy had recommended Doxport’s termination due to non-performance and the matter was later taken to court.

“All this is disclosed in the annual report. Maika has thousands of shareholders. It doesn’t belong to me,” he said.

He added that while he “admires Gobikrishnan’s energy”, the latter seems to have a personal vendetta against MIC leaders.

“He is confused,” Vell Paari said. 

Related Story

'Housing agents not paid, MUST students evicted'