Samy Vellu faces MIED revolt

Samy Vellu

KUALA LUMPUR, March 4 – Former MIC president Datuk Seri S. Samy Velly who heads the party’s cash rich education arm faces more pressure to step down.

A requisition for an emergency meeting of the Maju Institute of Educational Development (MIED) to remove Samy Vellu was submitted on Wednesday by three of its board members.

Another member of the board of trustees — Tan Sri Dr T. Marimuthu — was also asked to vacate his position.

The requisition was signed by former MIC deputy president Datuk S. Subramaniam, former MIC Youth chief A. Vigneswaran and former Kedah assemblyman Datuk S. Ganesan, who is also a member of the party’s central working committee.

“Yes, the notice was sent to ask Datuk Seri Samy Vellu and Tan Sri Marimuthu to relinquish their positions until the case is over, I don’t care if they continue to hold their positions when their case is over,” Subramaniam told The Malaysian Insider.

“I agreed to sign the requisition based on my intention to save MIED and that MIED must remain in MIC’s hands,” he added.

Another signatory of the requisition, Ganesan, said Samy Velly had lost his right to lead MIED after the appointment of Datuk G. Palanivel as the party president.

“He must now hand over the position to the new president,” said Ganesan.

Samy Vellu, Palanivel, Tan Sri M. Mahalingam, Marimuthu, Tan Sri Dr S.K. Ampikaipakam, Tan Sri Dr K.S. Nijhar, Tan Sri K. Kumaran and Tan Sri G. Vadiveloo are currently facing a lawsuit by MIED, which was initiated by Vigneswaran.

Mahalingam and Kumaran are no longer member of the board.

In the suit, filed on July 5, MIED claimed that all the defendants had breached their fiduciary and statutory duties, and failed to discharge their responsibilities as trustees and auditors, which caused MIED to suffer huge losses.

It was also seeking an injunction to restrain Samy Vellu from continuing to helm the institute, that he be stripped of his membership in MIED and for him to return all monies or profits made from MIED either by himself or through family members and close friends.

MIED was also seeking a court order to make Samy Vellu compensate all the financial losses incurred by the institute during his tenure as its chairman as well as damages amounting to RM100 million.

The requisition for EGM has come as Samy Vellu faces accusations of attempting to hijack MIED from MIC by expanding its board of trustees, which was denied by the former works minister.

“Samy Vellu should not do anything like increasing MIED members until the court has disposed the matter,” Vigneswaran said.

It is understood however the move oust Samy Vellu could be easily defeated as the majority of the 34 MIED members remain loyal to the party’s longest serving president.

The Malaysian Insider understands Palanivel is still struggling to win the support of the majority of the MIED members because of his failure to award party leaders with GLC positions, government appointments and contracts.

MIED with assets of about RM1 billion, has been chaired by Samy Vellu since it was established in 1984.

It currently has 34 members who have the power to elect the chairman of the 10-man board of trustees.

MIED is scheduled to hold its annual general meeting in the middle of this year, the first since Palanivel became MIC president last December. - Malaysian Insider