Samy Vellu transferred funds?

By Carolyn Hong,  The Straits Times

A former top officer of the Malaysian Indian Congress' (MIC) education arm yesterday alleged that party president S. Samy Vellu had transferred RM2 million from government funds to a MIC welfare foundation.

Ms P. Chitrakala Vasu, who was asked to leave her post as chief executive of the Maju Institute of Education Development (MIED) last month, yesterday lodged a police report over the funds. She also lodged a report over her claim that 'lorry-loads' of files were removed from her former office.

In her report, quoted by the Malaysian Insider website, she claimed Datuk Seri Samy Vellu had asked her to place RM2 million in a fixed deposit in the account of YPS, a party foundation controlled by MIC.

Mr Samy Vellu, who was then Works Minister, was chairman of the YPS foundation, while Ms Chitrakala was the chief executive.

Ms Chitrakala said the money was still in the fixed deposit when she left her job, but she was making the report in case it goes missing. Her reports were the latest development in an ongoing saga which blew up early this year when she was asked to show cause by Mr Samy Vellu over discrepancies in the MIED accounts.

The MIC has set up a panel to investigate. It claimed RM5 million had been taken out from MIED's account.

Ms Chitrakala said she had done nothing wrong, and claimed that her troubles started when Mr Samy Vellu wanted to sever MIED's ties with MIC. She claimed that this would enable him to control MIED even if he lost the MIC presidency.