Samy Vellu in the case of the missing files and government funds

By Baradan Kuppusamy

KUALA LUMPUR, Feb 28 — The murky financial dealings of MIC were laid bare today after a one-time loyalist implicated Datuk Seri S. Samy Vellu in mismanagement of party funds and misappropriation of government money.

P. Chitrakala Vasu, who is at the centre of a raging row with Samy Vellu over the MIED financial fiasco, alleged today that up to RM2 million raised for tsunami victims in 2004 was transferred from government accounts to a party foundation controlled by the MIC president.

She also alleged that lorry-loads of files were removed from the office of MIED, MIC's education arm of which she was once the chief executive.

MIED had raised millions of ringgit from the Indian community, in addition to receiving about RM300 million from government sources and a loan of RM220 million from Bank Pembangunan Malaysia, which is outstanding, for the construction of the AIMST university in Kedah.

Today, Chitrakala made public two reports she made earlier in the morning in Shah Alam urging police to probe the whereabouts of the MIED files and also RM2 million in donations collected in 2004 for tsunami victims in Sri Lanka.

In her report, she claimed the RM2 million was deposited from the Works Ministry into the account of the Yayasan Pemulihan Social (YPS) of which Samy Vellu is chairman and Chitrakala the CEO. Samy Vellu was then the works minister.

“Some time in February 2008 (just before the March 8 election) Samy Vellu telephoned me and informed me that the Works Ministry Treasury would transfer RM2 million into the YPS account and asked me to place the money in fixed deposit,” she said in the report.

“He told me this money was for the people of Sri Lanka but since it was not used he was transferring to YSS for later use,” she said.

"The money was put in a CIMB fixed deposit account and was still there when I left on Jan 2, 2009,” she said in the report, adding that she was making the report to prevent Samy Vellu from using the money for any other “unauthorised purpose”.

She also fears she might be blamed if the money when “missing”.

In the second report, she urged police to investigate “missing” MIED files and gave details of a heated confrontation she had with Samy Vellu in his office on Dec 31, 2008 in the presence of MIC vice-presidents Datuk S. Veerasingham and Datuk S. Sothinathan.

“A heated argument broke out after Samy Vellu made baseless accusations and I told him I will see him in court but he replied court is not the place,” she said in the second report.

In the report, she said Samy Vellu allegedly told her that he would "make sure the police arrest and embarrass you”.

“Soon thereafter I was slammed with five show-cause letters and more followed after this,” she said.

“After I left on Jan 1 without even taking my personal belongings I learned lorries were used to remove files from the MIED office and taken to an undisclosed location on orders of Samy Vellu,” she said in the report.

At the press conference, Chitrakala said the police must investigate how so many files had gone missing and why she is being blamed for it.

“What secrets these files hide?” she asked.

“This is only the first part… there is more coming,” a defiant Chitrakala told a press conference at a restaurant here today.

“I was followed, photographed, harassed and threatened in the days leading to this press conference,” said a visibly angry Chitrakala, 38, who is married with four children.

Even major newspapers considered close to Samy Vellu were not invited to the event for fear the news would be leaked and she could be waylaid or the press conference somehow scuttled.

“He pushed me to the wall, he asked for this (revelations). I worked hard for him and protected him for 14 years but in the end he came after me and pushed me to the wall,” Chitrakala told The Malaysian Insider before the press conference.

“I am not afraid of him… I know the truth behind him,” she said, adding all the accusations Samy Vellu had made against her over the missing MIED files and for involvement in corrupt deals were false and designed to shatter her.

“He has to answer not me,” Chitrakala said, breaking down in tears at how she and her family now feared for their lives.

“He is powerful, he is big… we are nothing. But we have the truth, the people behind us. That’s why I am going public. The people have a right to know,” she said.