PETALING JAYA, July 30 — The MIC’s failed investment arm Maika Holdings has emerged once again as a hot-button issue in the lead up to the party elections.
The Malay Mail’s editor Frankie D’Cruz asked S. Vell Paari, the chief executive officer of Maika from 1999 till mid 2010, to explain intense matters that party treasurer Datuk Jaspal Singh raised last week in the Dewan Negara.
FD: How fatal has Maika’s failure been to the MIC?
VP: I have always admitted that Maika’s failure was a contributing factor that weakened the support of the Indian community for the MIC and Barisan Nasional. This was despite Maika paying out RM41 million in dividends.
And even though we returned the original RM100 million investments by shareholders, it was nothing to be proud of because the inflationary effects since the early 1980s — when Maika was set up — caused them losses on their outlay.
FD: Were you part of the G Team Resources management team that took control of Maika?
VP: No, I was not. After I resigned in mid-2010, G Team took control of Maika and I was never involved.
I suspect Datuk Jaspal keeps saying “G Team and Maika management” to implicate me as being responsible in effecting the sale of insurance company Oriental Capital to the Tune Group.
I feel there’s a hidden political agenda.
FD: Explain the sale of Oriental Capital, Maika’s prized asset?
VP: Being an insurance company, Oriental Capital Berhad is governed by the Banking and Financial Institutions Act. Only on obtaining Bank Negara’s approval can the potential buyer open negotiation with a financial institution.
Bank Negara has a say on the price. If you recall the case of People’s Insurance where although the board had agreed to sell at a certain price, Bank Negara intervened to say the purchase price was too high and told them to reduce it.
Hence, Bank Negara would and should have played the role to ensure the Oriental Capital transaction was above board.
The Malay Mail’s editor Frankie D’Cruz asked S. Vell Paari, the chief executive officer of Maika from 1999 till mid 2010, to explain intense matters that party treasurer Datuk Jaspal Singh raised last week in the Dewan Negara.
FD: How fatal has Maika’s failure been to the MIC?
VP: I have always admitted that Maika’s failure was a contributing factor that weakened the support of the Indian community for the MIC and Barisan Nasional. This was despite Maika paying out RM41 million in dividends.
And even though we returned the original RM100 million investments by shareholders, it was nothing to be proud of because the inflationary effects since the early 1980s — when Maika was set up — caused them losses on their outlay.
FD: Were you part of the G Team Resources management team that took control of Maika?
VP: No, I was not. After I resigned in mid-2010, G Team took control of Maika and I was never involved.
I suspect Datuk Jaspal keeps saying “G Team and Maika management” to implicate me as being responsible in effecting the sale of insurance company Oriental Capital to the Tune Group.
I feel there’s a hidden political agenda.
FD: Explain the sale of Oriental Capital, Maika’s prized asset?
VP: Being an insurance company, Oriental Capital Berhad is governed by the Banking and Financial Institutions Act. Only on obtaining Bank Negara’s approval can the potential buyer open negotiation with a financial institution.
Bank Negara has a say on the price. If you recall the case of People’s Insurance where although the board had agreed to sell at a certain price, Bank Negara intervened to say the purchase price was too high and told them to reduce it.
Hence, Bank Negara would and should have played the role to ensure the Oriental Capital transaction was above board.