A former Puchong MIC Youth leader today lodged a corruption report against party president S Samy Vellu for alleged abuse of power in awarding contracts for construction of the party-run AIMST university.

Now a Puchong PKR branch leader, S Murali submitted documentary evidence to the Malaysian Anti-Corruption Commission this morning in Putrajaya against Samy Vellu.

samy vellu exclusive on tamil schools 080708 03 Samy Vellu, who is also president of MIC's education arm - Maju Institute for Education Development (MIED) - is alleged to have given “millions of ringgit worth of tenders to three companies close to him” to build the university in Kedah.

The three construction companies alleged to be involved are SP Setia Sdn Bhd, Nova Nusantara Sdn Bhd and Sinniah Sons Sdn Bhd - all alleged to belong to someone who is close to Samy Vellu.

Murali also claimed that the president of SP Setia Sdn Bhd - Abdul Rashid Manaf - is also chairperson of MIC investment arm Maika Holdings Bhd, a brainchild of Samy Vellu.

mied aimst medical college centre faculity 050109 06 Maika was purportedly set up to enable Indian Malaysians to have a share in the country’s economic growth.

“(SP Setia Sdn Bhd) chief executive officer Hari Narayanan also held a director’s position in AIMST university,” said Murali.

He further said that Nova Nusantara Sdn Bhd was directly and indirectly awarded projects worth in excess of RM50 million.

RM100m from MIC branches

“Besides this, SP Setia was also directly involved in the construction of AIMST university,” claimed Murali.

The Asian Institute of Medicine, Science and Technology (AIMST) University is a private educational institution set up by MIED in 2001.

Murali also alleged that Samy Vellu had instructed each MIC branch to pay RM110,000 for the construction of the university.

“Then, Samy Vellu also collected some money from contractors and individuals,” he claimed.

Through this, Murali added, Samy Vellu collected RM100 million, as well as RM25 million from MIC branches and others, while the government allocated RM300 million for the construction.

“RM220 million was also lent by Bank Pembangunan. With this, he has managed to collect RM645 million. But is this the real figure?” asked Murali.

“Samy Vellu could, in his capacity as MIED and MIC president, mark up the prices (for the construction) and take the rest of the money."

He further alleged that SP Setia Sdn Bhd had founded two companies belonging to Narayan’s wife and his brother-in law.

“I have documentary evidence regarding this two companies and I have forwarded them to MACC,” said Murali when contacted.

This is not the first time MIC has been rocked by a scandal involving MIED. Previously, there were alleged irregularities in the awarding of contracts for maintenance of the party-run university.