Samy Vellu: I never gave instruction to withdraw RM4m

KUALA LUMPUR: Former MIC president S Samy Vellu denied today that he had instructed the then Maju Institute of Educational Development CEO P Chithirakala to withdraw RM4 million from MIED's accounts and prepare three cheques to purchase shares for his son, S Vell Paari."It's a lie. I never gave such instruction," Samy Vellu said under cross-examination by Chithirakala's counsel J Chandra, at the Sessions Court here.He also disagreed with Chandra's suggestion that the money actually belonged to him but was kept under the name of Rashid Manaf, an AIMST Sdn Bhd shareholder.

When questioned further, Samy Vellu said he was not aware of a letter from Rashid requesting the issuance of a RM1 million cheque and another, also for RM1 million, on May 3, 2007, allegedly to acquire 20% shares in two companies, Wirna Jernih Sdn Bhd and Silver Line Sdn Bhd, for Vell Paari.He stressed that he recalled signing a supporting letter for Silver Line in bidding for a national camp project but had no knowledge on the purchases of the said shares as contended by the defence.

Samy Vellu pointed out that MIED and MIED Capital were two different entities and that he had nothing to do with MIED Capital, saying its signatories were M Mahalingam and M Kumaran.He also explained that MIED did not have the fund when MIC mooted the idea of a medical college and that he approached Rashid and succeeded in securing a loan of RM5 million.On May 11 last year, Chithirakala, 40, claimed trial to cheating former MIC treasurer-general M Mahalingam, 74, a director and signatory of MIED Sdn Bhd by inducing him to sign three cheques – two for RM1 million each, and another, for RM2 million in 2007.

Questioned further by Chandra why the Registrar of Companies' (ROC) record revealed that Rashid owned a substantial amount of shares of MIED Capital, Samy Vellu said it was a government policy to allocate 30% Bumiputera ownership and that since the MIC did not have the money at that time, it decided to allocate 40% of the shares to him.He also told the court that the decision was not his alone but the board's decision and was minuted during one of MIED board meetings.

Asked whether he could produce the minutes, Samy Vellu said he needed to check because some of the documents were with the police and the Malaysian Anti-Corruption Commission (MACC).On the issue of whether he was a shareholder of Nimat Sdn Bhd which bought a piece of land next to MIC building, Samy Vellu said: "I was not the shareholder. I just represented MIC in the beginning where Maika Holdings also had shares in that company."


When asked whether Rashid also had an interest in the company, he said he was not aware about it.The hearing before judge Che Mohamad Zulkifly Jusoh continues on May 26.Chandra is assisted by counsel Afifuddin Hafifi, while the prosecution is represented by deputy public prosecutors Kevin Morais and Wong Pooi Yoke.


Source : Bernama