Accusations of financial irregularities have surfaced in the Indian Progressive Front (IPF) party, with fingers being pointed at cancer-stricken president MG Pandithan.

However, a senior leader has dismissed the allegations.

These irregularities, if proven, could result in the party being struck off by the Registry of Societies, which is aware of the alleged irregularities and has started an investigation.

The accusations have been hurled by several senior party members, including some from the party's central working committee.

Most of them have been with Pandithan from the time he formed the party in 1990. Some were his compatriots when he was sacked from MIC in 1988.

One frustrated veteran, JR Kemson ( photo ), told malaysiakini recently that these leaders are disappointed with Pandithan's running of the party.

"We want to know what has happened to all the money collected so far from members for the party," he said.

According to him, Pandithan has never accounted for money collected from members from the beginning.

"We have had four annual general meetings since 1990 and not once has the president tabled the financial statement for debate," he claimed.

Building fund

Similarly he said Pandithan has never accounted for donations collected for the purpose of building the IPF headquarters.

"Members were asked to contribute, while a RM2.5 million lottery scheme was rolled out. An insurance scheme for members was also introduced to collect money for the building," he said.

Kemson alleged that the lottery scheme had no winners while the insurance scheme was scrapped a year later after members had bought insurance policies.

"Every time we asked him to account for the amount collected, he would say all would be cleared after the headquarters had been bought and was ready for use," he said.

"Now the building in ready (near the Sungai Besi toll plaza). But when we asked him for the accounts, he merely removed us from party posts and stopped us from questioning him."

Kemson was removed early this year from the CWC for continuously raising questions about the sum collected for the building fund. Several other leaders were similarly removed, including some state-level leaders.

The president was said to have used the constitution to bar the deposed leaders from asking questions.

"All this while, we have been keeping silent, thinking that everything was being done for the good of the party. However we now realise that the party is in debt over the new headquarters and that it is being sued by a contractor for non-payment," said a state leader who was among those sacked.

Where's the money?

According to bank documents seen by malaysiakini , the outstanding sum owed to banks stands at about RM800,000.

The state leader, who refused to be named, said the party had bought the building for RM2.8 million. The building fund stood at RM3 million, he added.

"Why is there still an outstanding amount? Where has all the money gone and why isn't Pandithan coming clean on the amount collected and spent on the building?" he asked.

Kemson, who said he personally collected more than RM100,000 for the building fund, wrote a letter of complaint to the Registrar of Society in March. He is also in the midst of sending a similar letter to the prime minister.

"All I want is to know where the money has gone. I want the IPF headquarters to inform members who had worked hard to raise money for the building. I want to show Pandithan's true colours," he said.

He claimed that Pandithan ( photo ) had successfully removed most of the senior vocal leaders and had appointed younger people to the helm of the party.

Pandithan, who is in ill health, is running the party with the assistance of V Senggutuan, the former secretary who was promoted to deputy president last year and is seen by many as the president's blue-eyed boy.

Accounts soon

Contacted for comment today, Senggutuan said everything was in order.

"Pandithan is not a person who would cheat anyone. He has struggled more than anyone else in the party for the members and our principles," said Senggutuan.

He added that the party is in the midst of settling the outstanding loan and once everything is sorted out, the accounts would be tabled.

"We discussed this matter at the CWC meeting yesterday and the treasurer has been tasked to prepare the complete accounts. Please wait for that," he said.

He urged discontented members not to rush into making accusations.

"The building is valued at RM5 million now. It belongs to the party. We want the members to know that we are doing our best for their sake," he added.