Millions in ringgit were allegedly channelled to companies connected to S Vell Paari, the MIC secretary-general who was appointed as CEO of Maika Holdings.
- Maika’s funds were raised from mostly middle and low-income earners of the Indian community
- Investors were promised handsome profits which they never saw, with many suffering losses
- Allegations of “grave wrongdoings and massive misappropriation of funds” from 2003 to 2009 before Maika wound up
- 20 cash payments from Maika to Vell Paari under guise of “promotional finder fees” and without detailed explanations
- Whistle-blowers believed to have now made a police report and passed information to MACC
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. It was set up in 1983 as an investment vehicle for MIC, raising RM106 million from some 66,400 members of the Indian community, mostly middle and low-income earners. They were promised handsome profits but never got them. Alleged mismanagement led to heavy losses with investors barely making a return, with many suffering losses.
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.
The website cited a report lodged with the Malaysian Anti-Corruption Commission (MACC) by a liquidator involved in the winding-up of the MIC-owned company, on payments made 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.
“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”.
The payments included RM33,500 to a law firm for what was said to be a private case linked to Vell Paari’s mother “over a matter that had nothing to do with the interests of the ordinary shareholders of Maika Holdings”, the report said.
Another RM1.3 million went to OKA Motor Company Limited, a Western Australian-based 4WD auto company owned by Vell Paari’s family, which the report said was in trouble with Australian authorities over the non-payment of employee taxes. The funds were transferred 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’.”
The company allegedly received a further A$870,000 (currently RM2.5 million) in 2002 for a purported termination of a contract and for procurement of advanced software.
Other companies linked to Vell Paari which allegedly received payments from Maika were:
- South African firm Reumech OMC which produced armoured vehicles and was given US$3.12 million (RM11 million),
- a film distribution company which was given RM1.3 million to buy the rights for Tamil hit movie Sivaji the Boss,
- and vernacular newspaper Tamil Nesan, of which Vell Paari was managing director, which was given RM150,000.
Sarawak Report claimed these payments did not obtain Maika-board approvals.
It was reported that Vell Paari would be issuing a statement soon to respond to the allegations.