Blow for Samy Vellu as MIED case proceeds

By Baradan Kuppusamy

September 07, 2010

Samy Vellu will now be required to address charges of graft and mismanagement in relation to the MIED. — file pic

KUALA LUMPUR, Sept 7 — MIC president Datuk Seri S. Samy Vellu was dealt a blow after the Court of Appeal rejected his appeal against a derivative action suit filed by Maju Institute of Education Development (MIED) member and former Youth chief S. Vigneswaran.

Samy Vellu must now answer all the allegations laid against him by his detractors, who have lodged numerous police reports alleging corruption and mismanagement in the scandalised MIED running into the hundreds of millions of ringgit.

Former ally and MIED CEO P. Chitrakalas Vasu has already been charged with misappropriating RM4 million from the institution, but critics like Gerakan Anti-Samy Vellu (GAS) leader and sacked MIC member V. Mugilan have demanded investigations be extended to include Samy Vellu and all his actions in relation to MIED.

“I believe the upcoming court hearing will expose Samy Vellu for good,” Mugilan told The Malaysian Insider.

On Monday, the Court of Appeal unanimously held that the action was valid and may proceed as applied for in the High Court.

On June 14, Judicial Commissioner Mah Weng Kwai ruled that Vigneswaran had a case against Samy Vellu and the trustees of the MIED — most of whom are seen to be Samy Vellu loyalists who once held senior positions in the MIC.

Derivative action under Section 181A of the Companies Act is unique as it allows a stakeholder to hold principle office bearers, trustees and employees accountable for the losses the company might have suffered as a result of their actions or omissions in protecting the interests of the corporation.

On Monday, the Court of Appeal panel comprising Datuk Zainun Ali, Datuk Ramly Ali and Datuk Jeffrey Tan Kok Hwa, said Section 181A of the Companies Act was applicable to all categories of companies.

“We find no reason to interfere with the findings of the High Court,” Zainun said in dismissing an appeal by Samy Vellu, the MIED chairman, and the MIED trustees.

Politically, the rejection is a significant blow for MIC president who is fighting internal and external pressure to step down by December 31 at the latest.

“It is like a fishbone in his throat,” said a senior MIC leader referring to the potential exposure if the MIED case proceeds in the High Court.

Case management has been set for September 25.

“It’s more like a dagger pointed at his heart,” said another MIC leader. “The Pandora’s box would explode open with this action against the MIED.”

While the MIED was incorporated as a company, it has raised funds from the Indian public for its various projects — including the flagship AIMST University in Kedah.

The government also gave RM300 million for the university project.

In the derivative action, the MIED is the plaintiff and is seeking an order that Samy Vellu be stripped of his rights as a signatory to MIED cheques with immediate effect and for an injunction to stop him from continuing to serve as chairman and member of the board of trustees.

If the action is successful, it would severely dent Samy Vellu’s ambitions of continuing as MIC president. He has said he will resign sometime in September 2011 although his current term ends in March 2012.

It is widely expected that he plans to hold an early presidential election sometime in mid-2011, and allow a free and open contest that would likely see a three- or even four-way contest between deputy president Datuk G. Palanivel, senior vice-president Datuk Dr S. Subramaniam, former deputy president Datuk S. Subramaniam and former vice-president Datuk S. Sothinathan.

Freeze permit for Samy's paper, ministry urged

MON, 30 AUG 2010 18:18

By G Vinod

KUALA LUMPUR: The Gerakan Anti-Samy Vellu (GAS) movement has urged the Home Ministry to freeze Tamil Nesan's publishing permit. GAS coordinator KP Samy said action must be taken against the daily, owned by MIC president S

Samy Vellu's family, over a Sunday article which attacked journalists.

He said the daily's chief editor A Veerasamy, who uses the pen name Tamil Mani, had labelled all journalists as frauds with no honour in his column.

“I was shocked that he even called for journalists to be skinned alive. This is a threat against journalists,” he told a press conference here.

KP Samy said GAS had sent a letter to the Home Ministry's office this morning regarding the matter.

The sacked MIC leader criticised the newspaper for degrading the Tamil language and not adhering to journalistic ethics.

“We all know Tamil Nesan belongs to Samy Vellu and his son Vel Paari. Samy Vellu has been going around claiming to be the protector of Tamil in this country. Is this how he protects the language, by allowing his chief editor to write such articles?” he asked.

“Both of them (Samy Vellu and Vel Paari) should do the right thing and sack Tamil Mani for his foul writing,” he said, adding that it was not the first time.

“It has been happening for six months. I am sure Samy Vellu and his son are aware of it,” he said.

KP Samy said if the ministry did not act within the next three days, GAS would submit a memorandum.

GAS to ratchet up pressure to get Samy removed

THU, 02 SEP 2010 15:05

By G Vinod

PETALING JAYA: Coordinators of Gerakan Anti-Samy Vellu (GAS) reiterated their threat to converge in front of MIC president S Samy Vellu's house if the long serving party chief does not vacate his post by year's end as promised.

Sacked party central working committee member G Kumar Aamaan, one of the movement's coordinators, said if Samy Vellu does not step down by December, GAS would hold a gathering in front of the MIC chief's residence in Jalan Ipoh in a bid to force him to vacate the post he has held since 1979.

“We will hold a silent gathering at his place. We also plan to send a memorandum to the Yang di-Pertuan Agong over the matter,” Kumar Aamaan told FMT.

The movement is also peeved at Samy Vellu's statement yesterday that he will not be stepping down come December. He did not state when he intended to leave the post.

Earlier reports quoting sources, revealed Samy Vellu had been telling his inner-circle that he “will not be around after December”, raising prospects that the party veteran may step down sooner than his proposed September or October 2011 deadline he had set for himself.

His statement yesterday effectively poured cold water on his December 2010 departure date.

Samy can't be trusted

Kumar Aamaan said this was why party members should not trust Samy Vellu's words and why GAS came into being in the first place.

“Some quarters told us off saying since Samy had already announced his retirement plans, why antagonise him further. Now they will know why we did what we did,” he said.

Another GAS coordinator, V Mugilan, said this had been Samy Vellu's way of doing things which was "promising one thing and backtracking later on".

“This is the real Samy Vellu, the one who loves to break his own promises,” said Mugilan, who was sacked from his position as the MIC deputy youth chief for urging Samy Vellu to retire.