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‘Cafetaria cronyism’ cooks up losses

 | July 24, 2012

PKR alleged that the profitable cafeteria business was outsourced to a company owned by an MIC leader in 2007.


PETALING JAYA: Asian Institute of Medical, Science and Technology (AIMST) lost millions in revenue after its cafeteria business was outsourced to an MIC leader.

PKR national strategy and policy bureau secretary S Gobi Krishnan made this allegation at a press conference today.

Also present were party communications director Nik Nazmi Nik Ahmad and deputy information chief Sim Tze Tzin.

Gobi claimed that although AIMST was running the cafeteria since its inception in 2001, the business was outsourced directly to a company called Jaya Cafe Holdings Sdn Bhd on Jan 5, 2007 , which is owned by the MIC youth treasurer J Dhinagaran.

“Based on my investigation, Dhinagaran and other directors were only appointed to the company on Jan 3, 2007. Anyone will know that a company cannot get a contract in two days. This is a rent- seeking Barisan Nasional style,” alleged Gobi.

He also produced a letter of award, signed by then AIMST chairman M Mahalingam.

He also accused Jaya Cafe of occupying 8,652 square feet of space for the cafeteria, while the contract only allowed them to rent an area of 1,224 sq ft.

“The cafeteria operator is only paying for the space as stipulated in the contract, which is RM151,470 from 2007 to 2009. It means AIMST has lost hundreds of thousands in profit there as well,” claimed Gobi.

Over billed

He also alleged that Jaya Cafe had over-claimed charges from AIMST by RM498,185 in 2007 and 2008, based on an independent audit done in 2010.

“The food cost is subsidised by the university. Instead of billing for 1,080 students, the cafe operator billed AIMST for 1,200 students in the two years,” claimed Gobi.

He urged AIMST chancellor S Samy Vellu to answer the allegations as it involved taxpayers’ money.

“Not only did the government give a grant of RM300 million to set up AIMST, Malaysians from all walks of life also donated money for the university. Even I donated money for it,” he said.

AIMST was set up in October 2001 by MIC’s education arm, Maju Institute of Education Development.


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