Money from Maika was mine, says MIC’s Vell Paari

MIC secretary-general S Vell Paari says prior to the publication of the allegations by Sarawak Report, there was an attempt to blackmail him for RM3.5 million.

PETALING JAYA: MIC secretary-general S Vell Paari today called the allegations by Sarawak Report that he was paid millions by MIC linked-Maika Holdings “scandalous and frivolous”.

Vell Paari, who is also the son of former MIC president S Samy Vellu, said when he took over as CEO of Maika Holdings, the company was already financially distressed.

He claimed he had then funded the MIC-owned company from time to time, enabling it to meet its financial obligations.

“When Maika had the funds, they would refund me the monies in advance.

“As a matter of fact, at the time Maika was wound up, the company was still indebted to me for a large sum of monies advanced to them and for my unpaid salaries,” he said in a statement today.

Sarawak Report published documents showing how money, some of which was in the form of cash, was paid to companies connected to Vell Paari.

The company was set up in 1983 by Samy as an investment vehicle for MIC, raising RM106 million from some 66,400 members of the Indian community, mostly low-income earners.

They were promised handsome profits but only received 80% of their original investment in the end.

The website cited a report lodged with the Malaysian Anti-Corruption Commission by a liquidator involved in the winding-up of the company, on payments made between 2003 and 2009.

Vell Paari explained that payments made to a South African firm, which amounted to RM500,000 and not US$3.12 million (RM12.71 million), as published by the site, were done pursuant to an investment arrangement by Maika.

“The arrangement was approved by the board of directors as well as Maika members at the annual general meeting.

“To the best of my knowledge, these investment arrangements were terminated and payments were refunded to Maika,” he said.

Vell Paari further claimed that prior to the publication of the allegations by Sarawak Report, he had been contacted by two parties, one of whom indicated that this article could be “resolved” with a payment of RM3.5 million.

“This was clearly an attempt to blackmail me.

“I refused to be blackmailed and hence, the publication of this very article,” said Vell Paari, who did not reveal the identities of the two people.

Vell Paari also stated all his Maika shares had been sold to G Team Resources & Holding Sdn Bhd.

All the documents pertaining to the matters alleged in the article are in the possession of Maika’s liquidator M Thangaveloo Arasu, he added.

He said MACC and the police seized some company documents between 2005 and 2008 in relation to investigations carried out against other parties, and the investigation had since ended.