KUALA LUMPUR, Feb 28 — Maika Holdings passed millions of ringgit in cash and other forms of payments to companies linked to Datuk Seri S. Vell Paari, the fund’s former chief executive and current MIC secretary-general, Sarawak Report alleged in a report published earlier today.
The whistleblower website claimed new documents from Maika’s liquidation proceeding suggested Vell Paari “extracted” millions from the fund in the years leading up to its collapse, with the money mostly diverted into several companies connected to the MIC leader.
It claimed twenty cash payments totalling RM1.6 million were made out by the company to Vell Paari from 2003 to 2009, some under the guise of ‘promotional finder fees’, but most without any explanation given.
In one payment, the website alleged RM33,500 was paid to a law firm, Sree Harry, for what appeared to be the settlement of bills related to Vell Paari’s mother.
“Sarawak Report believes that whistleblowers have now made a police report and passed the information with the Malaysian Anti-Corruption Commission, something they were fearful to do under the previous government,” the website said.
The RM1.6 million accounted for just a portion of the fund Vell Paari to have received, the website alleged.
OKA Motor Company Limited, a company owned by Paari and his family based in Perth, was also alleged to have received RM1.3 million in nine separate payments 1999-2000.
Sarawak Report said the payments were made “on the basis of an alleged ‘technology transfer’ for a ‘soft shell version of a 4X4 wheel drive army vehicle’”.
A further A$145,301 (RM420,000) was also remitted in 2002, the website alleged, after the termination of the supposed contract with Maika.
The website said whistleblowers who shared the information saw no substance in terms of outcomes for the investment.
Meanwhile, MIC central working committee member, Punithan Paramsiven, said the party should take the allegations seriously but insisted that it had little involvement.
“But because we have a social and moral responsibility for Maika Holdings investors, we surely would feel the heat of the allegation,” he said in a statement.
“This kind of disclosure cannot be taken lightly... a thorough investigation is needed for justice.”
Maika Holdings was established by the MIC in the early 1980s as an investment fund for the Indian community.
Its shareholders were 60,000 mostly poor Indian members of the Barisan Nasional component party.
Vell Paari, the son of then MIC president, Sami Vellu, was made the fund chief executive in 1999.
The fund reportedly raised RM108 million in the first year but lost most of the money to what its managers claimed were bad investments. It forced Maika to be liquidated in 2010.
Sarawak Report said the extent the cash withdrawals made by the CEO and the investment into his own companies contributed to the fund’s collapse, has yet to have been publicly evaluated and no report was issued on the matter, since seven years ago.
“Whether Vell Paari can provide a justification for the payments or to the contrary ought to be held to account, has also failed to be publicly discussed,” it said.
“Since for all the time the information has been kept secret.”
