MACC seizes documents belonging to Maika Holdings, widens probe

Former Maika chief executive S Vell Paari.

PETALING JAYA: The Malaysian Anti-Corruption Commission (MACC) seized documents belonging to Maika Holdings yesterday, a source close to the investigations said.

He said the raids were held to seize several documents linked to an ongoing probe on allegations of corruption and abuse of power.

“Yes, documents of the company secretary and liquidators were seized,” he told FMT.

Another source close to the probe said more documents may be taken and several people will be questioned over the issue.

The raids were held to probe alleged corruption and abuse of power in Maika following an expose by whistleblower site Sarawak Report earlier this year.

Sarawak Report had claimed that Maika had passed millions of ringgit in cash and other forms of payments to companies linked to its former chief executive, S Vell Paari, between 2003 and 2009, before its collapse.

Sarawak Report said despite a seven-year probe into the demise of the company, which lost savings belonging to 66,400 shareholders linked to MIC, the investigation papers were never revealed.

In an affidavit on the situation, the liquidator allegedly also refered to evidence of “grave wrongdoing and massive misappropriation of funds” during the winding-up of the company.

Vell Paari is now MIC secretary-general and the son of former MIC president S Samy Vellu.

Maika was initiated by Samy Vellu in the 1980s as an investment vehicle, with a focus on the Indian community.

It raised RM106 million from the 66,400 shareholders — 70% of whom were low-income earners — for its investment activities, but its profits were allegedly channelled elsewhere.

Former Kapar MP G Manivannan had previously said even though MIC and the federal government had tried to resolve the problem, those responsible were not brought to justice.

Minority Rights Action Party (Mira), which is a strategic partner of Pakatan Harapan, had also prepared a memorandum previously demanding the setting up of a royal commission of inquiry (RCI) into the Maika scandal.

In 2013, G Team Resources & Holding Sdn Bhd, led by tycoon G Gnanalingam and S Kunasingam, took over Maika. In 2015, G Team agreed to reimburse Maika shareholders who had yet to surrender their shares.