PKR today alleged Asian Institute of Medicine, Science and Technology (AIMST) had outsourced its lucrative in-house cafeteria services to a company owned by Penang MIC Youth chief J Dhinagaran despite the institution’s capability of managing the business itself.
At a press conference today, PKR national strategy and policy bureau secretary S Gobikrishnan produced an appointment letter which he claimed proved that the cafeteria business worth RM10 million was outsourced to Jaya Cafe Holdings Sdn Bhd without open tender on January 5, 2007.
"What was the basis for letting go such a lucrative in-house contract and outsourcing it to the MIC-linked company without open tender?" said Gobikrishnan.
He claimed that a search with the Companies Commission (SSM) on Jaya Cafe Holdings Sdn Bhd listed Dhinagaran, who is also the national MIC youth treasurer, his brother and two others as its directors who were appointed Jan 3, 2007, exactly two days before the AIMST cafeteria contract were awarded to them.
At a press conference today, PKR national strategy and policy bureau secretary S Gobikrishnan produced an appointment letter which he claimed proved that the cafeteria business worth RM10 million was outsourced to Jaya Cafe Holdings Sdn Bhd without open tender on January 5, 2007. "What was the basis for letting go such a lucrative in-house contract and outsourcing it to the MIC-linked company without open tender?" said Gobikrishnan.
He claimed that a search with the Companies Commission (SSM) on Jaya Cafe Holdings Sdn Bhd listed Dhinagaran, who is also the national MIC youth treasurer, his brother and two others as its directors who were appointed Jan 3, 2007, exactly two days before the AIMST cafeteria contract were awarded to them.
Profitable
Until Dec 31, 2006, AIMST University was carrying the business of food catering with a revenue of RM 3,267,103 in 2006.
After the contract was awarded, Jaya Cafe Holdings Sdn Bhd recorded a total revenue of RM20,452,720 from 2007 until 2009, an amount which could have gone to the university, Gobikrishnan said.
He added that according to an external audit report in 2010 commissioned by MIC, it had questioned the rationale of outsourcing the business to the MIC-linked company.
"We can't understand why the said profitable operation of AIMST was abruptly ceased in Jan 2007 and outsourced to Jaya Cafe," read excerpts of the report extract shown to the media.
However, Gobikrishnan declined to reveal the identity of the auditor.
Gobikrishnan also claimed that AIMST University had forgone rental income of RM 867, 609 because Jaya Cafe was paying for a much smaller area than it is currently occupying.
"Jaya Cafe Holdings was only allowed to rent an area of 1,224 square feet, but they were found to occupy 8,652 square feet of area, while paying the rent of the proposed area," said Gobikrishnan.
"They should pay RM 1,019,079 but the rental collected was RM151,470 for 2007, 2008 and 2009," he said.
Until Dec 31, 2006, AIMST University was carrying the business of food catering with a revenue of RM 3,267,103 in 2006.
After the contract was awarded, Jaya Cafe Holdings Sdn Bhd recorded a total revenue of RM20,452,720 from 2007 until 2009, an amount which could have gone to the university, Gobikrishnan said.
He added that according to an external audit report in 2010 commissioned by MIC, it had questioned the rationale of outsourcing the business to the MIC-linked company.
"We can't understand why the said profitable operation of AIMST was abruptly ceased in Jan 2007 and outsourced to Jaya Cafe," read excerpts of the report extract shown to the media.
However, Gobikrishnan declined to reveal the identity of the auditor.
Gobikrishnan also claimed that AIMST University had forgone rental income of RM 867, 609 because Jaya Cafe was paying for a much smaller area than it is currently occupying.
"Jaya Cafe Holdings was only allowed to rent an area of 1,224 square feet, but they were found to occupy 8,652 square feet of area, while paying the rent of the proposed area," said Gobikrishnan.
"They should pay RM 1,019,079 but the rental collected was RM151,470 for 2007, 2008 and 2009," he said.
No action after audit
Gobikrishnan also alleged that Jaya Cafe Holdings has over-claimed a total of RM 498, 185 for the year 2007 and 2008 for the cafeteria services.
Gobikrishnan also alleged that Jaya Cafe Holdings has over-claimed a total of RM 498, 185 for the year 2007 and 2008 for the cafeteria services.
According to him, the students were fully subsidised for food but Jaya Cafe had overestimated the number of students when making its claims from the university.
As proof, Gobikrishnan furnished a letter dated May 18, 2009 by a chartered accountant to MIC’s education arm Maju Institute of Educational Development (MIED) which state that Jaya Cafe had over-claimed RM121,558 between April to Dec 2007 for food and RM95,775 for supplying food for AIMST's official launch.
This is on top of another RM 273,760 over-claimed for food between January and December 2008.
This information, Gobikrishnan said, is based on an audit done on AIMST following the controversy surrounding the university and its management MIED broke out in 2009.
"But after the audit, it went quiet, not action was taken," he said.
He also warned that this was just the beginning and more would be exposed if MIC failed to address this.
As proof, Gobikrishnan furnished a letter dated May 18, 2009 by a chartered accountant to MIC’s education arm Maju Institute of Educational Development (MIED) which state that Jaya Cafe had over-claimed RM121,558 between April to Dec 2007 for food and RM95,775 for supplying food for AIMST's official launch.
This is on top of another RM 273,760 over-claimed for food between January and December 2008.
This information, Gobikrishnan said, is based on an audit done on AIMST following the controversy surrounding the university and its management MIED broke out in 2009.
"But after the audit, it went quiet, not action was taken," he said.
He also warned that this was just the beginning and more would be exposed if MIC failed to address this.
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