Four suspended members of the Penang Indian Association (PIA) have lodged a police report alleging discrepancies in the lease agreement signed between the NGO and Petronas.

This will enable a petrol station to be set up on a 30-year lease on part of the 1.6ha property - which includes a field - that the PIA owns in Bagan Jermal, George Town.

Vice-president S Sagar, building committee members Nandakumar Naidu and Christie Thomas, and ordinary member K Maran lodged their report at the Jalan Patani police station this morning.

They claimed that the management committee had breached an internal directive by signing the contract without prior approval from two-thirds of some 300 members at an extraordinary general meeting (EGM).

The complainants produced documents to substantiate their claim in relation to the agreement signed between the management committee and Petronas Dagangan Berhad (PDB) on April 11.

One document was a sworn affidavit dated April 23 and signed by PIA secretary Thomas Raphael for an application by the management committee, via a certificate of urgency, for a court order. On May 5, the court sanctioned the committee’s move to sign the agreement.

Petronas will pay a one-off sum of RM5.4 million to PIA for lease of the land. Of this, RM1.5 million will be paid to KL-based project consultant Optimum Prestasi Sdn Bhd.

Acting as spokesperson for the dissenting group, Nandakumar brushed aside the sworn affidavit as a false statement, saying that “the management committee had never had obtained the consent of two-thirds of members either at an AGM or EGM to sign the agreement”.

Disgruntled members want answers to these questions:

• Why didn’t the management committee seek approval from two-thirds of members-in -benefit at an EGM before signing the contract, to comply with a condition set at the AGM last July?

• Why was the application to obtain court approval made hastily through a certificate of urgency? Why didn’t the management brief members first?

• Why is RM1.5 million being paid to Optimum Prestasi?

• Why has the consultant - rather than PIA - been given the sole right to nominate a dealer to operate the petrol station?

• Why hasn’t the management committee been transparent on its dealings?

• Why aren’t members allowed access to relevant documents relating to the deal?

• Why haven’t members been given copies of the minutes of the last AGM?

He said 12 members who had questioned the management committee’s actions and validity of the agreement - including holding a street protest on June 10 - had been suspended. Show-cause letters have been issued to them.

‘Approval received’

When contacted, PIA president K Vijay Kumar said the management committee had complied with all rules and regulations of the association prior to signing the contract.

“The management committee signed the agreement only after it had obtained the support of two-thirds of members at last year’s AGM,” he insisted.

“The members gave us the green light to go ahead to sign the contract. Now some are changing their tune.”

He and PDB senior general manager (retail business division) Md Fadzlan A. Samad signed the agreement.

Vijay Kumar said the consultancy fee takes into consideration the high cost of expediting the land conversion process, as the site is categorised as ‘institutional land’. Preliminary works are also required before Petronas is able to operate the station.

“The consultancy cost is cheap compared to the company’s workload,” he said.

He also said the money from the deal will be used to finance a new building for PIA.

The management committee will decide in the next two days whether or not to file legal suits against the complainants and other protestors, as they “have smeared the image” of PIA. An inquiry will be held soon into the actions of the suspended members.

Established in 1924, PIA is the only Indian NGO to own a large piece of land in the heart of the city. The first premier of India, Jawarhalal Pandit Nehru, and his daughter Indira Gandhi had held a rally at the field.