S’wak Report: Millions of Maika funds channelled to Vell Paari-linked firms
Millions in ringgit have been allegedly channelled to companies linked to Maika Holdings CEO S Vell Paari (above) prior to the shuttering of the MIC-owned company in 2009, says whistle-blower website Sarawak Report.
In a newly-released article, Sarawak Report claimed the monies were transferred to the companies associated with Vell Paari in the form of cash and other payments between 2003 and 2009.
Millions in ringgit have been allegedly channelled to companies linked to Maika Holdings CEO S Vell Paari (above) prior to the shuttering of the MIC-owned company in 2009, says whistle-blower website Sarawak Report.
In a newly-released article, Sarawak Report claimed the monies were transferred to the companies associated with Vell Paari in the form of cash and other payments between 2003 and 2009.
It claimed to have come across the information in documents linked to the liquidation of Maika which allegedly referred to evidence of “grave wrongdoings and massive misappropriation of funds” during the company’s winding up in 2010.
Maika Holdings was the brainchild of S Samy Vellu, Vell Paari’s father, who is also a former MIC president and a close Umno ally. The investment arm was set-up in the early 1980s, raising over RM100 million in investment from Indian Malaysians, mostly among the middle and lower-income groups.
However, alleged mismanagement led to heavy losses with investors barely making a return, with many suffering losses.
“Sarawak Report believes that whistle-blowers have now made a police report and passed the information to the MACC, something they were fearful to do under the previous government,” the article stated.
According to Sarawak Report, documents sighted indicated that among the payments made included 20 cash transactions totalling RM1.6 million made out by Maika to Vell Paari without detailed explanations other than that they were “promotional finder fees”.
No board approvals
Over RM30,000 was also allegedly paid to a law firm, purportedly to settle legal fees for private action taken by Vell Paari’s mother over non-Maika-related matters.
A further RM1.3 million was allegedly paid to Vell Paari’s Western Australia-based 4WD auto company OKA Motor Company Limited in nine separate payments from 1999 to 2000 “on the basis of an alleged ‘technology transfer’ for a ‘soft shell version of a 4X4 wheel drive army vehicle’.”
On top of this, the Sarawak Report article alleged a further AUD$145,301 (currently RM422,100) and AUD$725,000 (currently RM2.1 million) were paid to OKA Motors in 2002 for an alleged termination of a contract and for procurement of advanced software, respectively.
Further alleged payments include a purported Bank Negara-approved transfer of USD$3.12 million (RM11 million) to another Vell Paari-linked entity in South Africa, Reumech OMC, which produced armoured vehicles and RM1.3 million to a Vell-Paari linked film distribution company over the film Sivaji The Boss, on top of payments made to vernacular newspaper Tamil Nesan of which Vell Paari was managing director.
Sarawak Report claimed these payments did not obtain Maika board approvals.
When contacted, Vell Paari told Malaysiakini that he would be issuing a statement on the matter tomorrow.
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