Posts Tagged ‘MIED’

MIC and MIED in turmoil over AIMST tenders

January 14th, 2009
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This is really a tale of two side. One on side, there’s the Star version of the issue, and on the other side the Malaysiakini version.

Let’s look at them both. The Star first.:

1. The report says that 3-member panel has been formed to investigate “alleged misappropriation” in the award of contracts by MIC’s education arm, the Maju Institute for Education Development (MIED) concerning the party’s Asian Institute of Medicine, Science and Technology (AIMST).

2. MIED board of directors appointed former MIC treasurer-general Tan Sri K.S. Nijhar to head the panel with MIC deputy president Datuk G. Palanivel and party disciplinary committee chairman Tan Sri G. Vadiveloo as members. It seems that Samy Vellu had instructed during the meeting for the panel to be formed.

3. Samy Vellu was concerned as three contracts seemed to be have been given out at inflated values. The sources said the panel would also investigate two contracts given to companies linked to a senior MIC leader.

4. Nijhar said:

“I am just looking through all the documents and have not gone into the details of the contracts.

“The panel will meet once I have sorted out the documents. The panel is not out to get anyone in particular, but to ensure everything is in order,” he said.

It was learnt that the panel had obtained all files on the alleged misappropriation from the MIED office.

5. The report then mentioned Tan Sri Mahalingam’s name (he was the MIC treasurer until replaced recently by SK Devamany) – “Mahalingam, when contacted, said there was nothing to hide and he would answer queries from the panel”. So, is Mahalingam the “senior MIC leader”? Your guess is as good as mine.

Let’s shift to Malaysiakini’s report:

1.MIC has been rocked by a scandal involving its education arm, Maju Institute for Education Development (MIED), over alleged irregularities in the awarding of contracts for maintenance of the party-run AIMST University. [OK, similar with Star report]

2. Sources said the trouble started when MIED was instructed to revoke two contracts given out based on an ‘open tender’ system. Instead, its managers were told to reassign these to persons close to MIC president S Samy Vellu. [Big difference here. Samy’s name is implicated]

3. The two contracts were respectively for grass-cutting services and to operate a canteen at the university. Sources said the sum quoted by the new parties – one of whom is based in Ipoh – was considerably higher than that in the bids already accepted.

4. The contracts were among five awarded by MIED for various services last year. [we get the figure of 5 contracts. The Star reported 3+2, so is it the same contracts?]

5. Heads are expected to roll – in fact, the summary dismissal of party treasurer M Mahalingam two weeks ago is said to be one outcome, although Samy Vellu had attributed it to “routine change”. On Dec 23, Mahalingam also had to relinquish his post as chairperson of MIED Capital Sdn Bhd, the company that runs the AIMST University located in Semeling, Kedah. [I bet this was not publicized anywhere. So, Malaysiakii links Mahalingam in this case]

6. Insiders said the situation over the contracts has pitted Mahalingam and MIED chief operating officer P Chitthirakala Vasu against Samy Vellu. It is learnt that both were unhappy with the manner in which they were forced to re-issue the contracts, and had repeatedly raised the matter with Samy Vellu. [Unlike the Star’s version, this paragraph indicates that its not Mahalingam who is the alleged “senior leader” in the Star, but its Samy himself!]

7. Chitthirakala is said to be under pressure to submit her resignation as well, but has refused to do so. She has told close friends that she will fight Samy Vellu “until the truth is known”. [she has now gone “on leave” and the Deputy CEO has taken over the running of MIED. I have a copy of her coffee table book on Samy Vellu]

8. “This is an explosive matter. The president is worried that this matter will be used against him in the party polls later this year and has decided to act against the duo,” said a source.

9. Sources said Samy Vellu has questioned the huge debt amassed in running the university, and that he has blamed the MIED top management for this.

10. Samy Vellu has since set up a three-member panel to investigate the alleged irregularities in awarding three of the five contracts, which he claimed had been given out at an inflated value. Details of the three contracts are not known. Set up following a meeting of the MIED board of directors last Friday, the panel is headed by former party treasurer KS Nijhar (right). The other two members are deputy president G Palanivel and party disciplinary committee chairperson G Vadiveloo. All three of them are considered to be Samy Vellu’s loyalists. Athough Nijhar and Palanivel had a fallout with Samy Vellu recently, insiders said that they are back in his good books.[similar with the Star report]

11. The panel is also expected to look into why the cost of constructing the university had increased.[extra duty of the panel]

12. The sources also said that Mahalingam, who had attended the meeting, had asked the panel to investigate the two contracts given to companies linked to Samy Vellu. [the Star did not mention that Mahalingam was at the meeting]

13. It seems Mahalingam has said –

“He has said that he has nothing to hide and that he had only followed the president’s instructions,” said an aide.“Mahalingam has also urged Samy Vellu to hand over the matter to the newly-established Malaysian Anti-Corruption Commission, but the president wants the matter to be probed internally.”

14. Sources, however, see the sole purpose of the panel was the removal of Chitthirakala – “The panel is in place so that Samy Vellu is not implicated in the (alleged) financial irregularities of MIED. It is not just a witch hunt against the top people in MIED, but also to clear Samy Vellu of wrongdoing,” said a source.

So,  reading both reports gives us more information to digest. What we can agree is that there’s a 3-member panel who will investigate 3 (or 5) contracts. 3 contracts alleged to be given out at inflated values, and the other two instructed to be given to companies linked to senior MIC leader (Samy Vellu ?) . The target of the panel is to investigate who’s fault it is. For me, if anyone can instruct MIED to do this and that, the investigation becomes easier. We are looking at the top people in MIED, MIED Capital, and MIC. 3 companies, 3 names.

Less MIED loans due to defaulters

June 20th, 2008
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Generally, most education funds have problem collecting back the loans. For example,  PSD, MARA, PTPTN, and also MIED.  MARA and PTPTN are improving after focusing on legal action and improving their system.

MIED said that number of applications is increasing (obviously!) but due to financial constraintst caused by loan defaulters, less applications will be approved.

According to Samy Vellu, non-performing loans (NPL) had been reduced to 17%. Previously, it only 34% actually made repayment! Probably the plan by MIED to bring defaulters to court prompted some of them to pay back.

For this session, MIED handed out RM1.5 million to 185 students. 90 of those students are pursuing medicine. In March this year, MIED gave RM2.7 million to 289 students.

More details from NST:

Besides legal action against defaulters, Samy Vellu said the loan programme had been restructured by allocating funds on a yearly basis and not for the duration of the course.

For instance, if a student pursued a three-year course, MIED would allocate funds for the first year only.

Money for the remaining two years would depend on the student’s academic performance and additional funds provided by the student’s family.
He said this after presenting MIED loans to 185 applicants, amounting to RM1.5 million at the MIC headquarters yesterday. Of the 185, 90 will pursue medicine.

He said since the loan programme was established in the 1980s, about RM90 million had been disbursed to 8,500 students to pursue tertiary education.

Samy and the medical degree drama

April 21st, 2008
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I didn’t bother much about this news until the names of Samy Vellu, MIED, and Chitrakala appeared. Looks like Indian community issue since 70% of the affected people are Indians.

I have to wonder, if these graduates are from WHO’s recognised programmes, why don’t they find a job anywhere but Malaysia? The country doesn’t want your services (yet?), so why not work elsewhere first? Perhaps the country where they obtained their degrees will be the best option. So, the decision by some of them to sit for overseas qualifying exams sounds like a better move. » Read more: Samy and the medical degree drama

MIED loan repayment only 34 percent

March 19th, 2008
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RM86 million / 8000 students = RM10750/student. 1984 until 2007 is 24 years. Rm86 million/24 years = RM3.583 million per year. Anyway, averages may not be painting the true picture, since if a medicine course costs 300K and a 1-year certificate course costs 5K, the higher-costing course will skew the results. » Read more: MIED loan repayment only 34 percent

TAFE graduate cannot get job

January 19th, 2008
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Perhaps MIED can write off his loan. I’m sure there are some companies that may not need recognised degrees. Unfortunately, he has been into lecturing, so academic qualifications are very important. Still, there are some colleges that may not insist on LAN-approved degrees. Or he can try overseas.

Ace student: MIC college cheated me
http://malaysiakini.com/news/77217
K Kabilan | Jan 19, 08 3:18pm
A MIC-run community college has been accused of misleading its students by not revealing that one of its popular degree programmes is not recognised by the government.

A former top student of the Tafe College in Seremban said that the college’s failure to disclose the status of its programme have spoilt the future of many students.

Perak-born CS Nachimani told Malaysiakini that he was not told that the Malaysian Qualifications Agency (a government agency formerly known as National Accreditation Board or LAN) had not approved or accredited the Bachelor of Engineering (Electronics System Design Engineering) degree which he pursued at Tafe.

“When I enlisted to do my degree at Tafe College in 1998, I was told that the approval was pending.

“After that not once the students were told that the approval or accreditation was rejected by LAN,” said 29-year-old Nachimani who graduated in 2002. The electrical engineering programme which he did was a twinning programme with UK-based -Northumbria University.

He claimed that there were about 150 students in his batch who were all in the same situation now.

“When I first joined Tafe and asked about the LAN approval, their response was that there would be no problems in getting the approval as it is a minister’s college,” he said.

The college, a brainchild of MIC president S Samy Vellu, is owned by the party, ostensibly to cater for the vocational educational needs of the Indian community. Samy Vellu is also the works minister.

College washes hands

Nachimani, who aced his degree examinations, was always a top scorer in his class. His lecturers thought highly of him and predicted that he would go places in his careers.

He has even published two electrical engineering theories in a UK-based trade magazine, and has a patent registered for one of the theories.

“But what’s the point. I am without a job now. If I had known the degree which I did with Tafe was not recognised by the government, I would have surely gone to study elsewhere,” he said.

He added that his problems only started when he applied to join a major educational institution as a lecturer about two years ago.

“Even since I graduated in 2002, I had lectured in smaller colleges to gain experience. And then a few years later I applied to one of the bigger ones and they told me that my degree was not recognised.”

He immediately approached his former college for clarification and was merely told off that they had failed to get the necessary approval.

A brief email response to him from the college administrator R Murgesu in November 2004 just told Nachimani that the course was not recognised as the course did not require students to complete any part of their course in the main university, in this case the Northumbria University.

“It means that the government would not recognise the electrical engineering course which was offered by Tafe on behalf of Northumbria locally,” explained Nachimani.

No help from Samy Vellu

, a spokesperson for Tafe College told that a change in government policy meant that the college had to stop offering Northumbria’s electrical engineering course.

At present the college is offering electrical engineering courses from Liverpool John Moore University, allowing students to complete two years here and finish their final year of degree in Liverpool.

However this course is also pending the approval and accreditation of LAN.

“They are up to the same thing again. I doubt if they are telling students about the approval part,” said Nachimani.

When Nachimani pressed the college to solve his problem, he was directed to Samy Vellu.

“I met Samy Vellu three times. He asked me to meet his aide, whom I had met 17 times. Still there is no solution to my problem,” he added.

He said that Samy Vellu had forwarded a letter to another MIC-run college for him to be offered a job but nothing has been forthcoming.

He was also advised by Samy Vellu’s aide to pursue his post-graduate study to overcome the non-recognition aspect of his degree.

Unfortunately for him even his post-graduate study which he did via correspondence in 2006 with an American university is not recognised by the government.

“It’s a double blow for me. And to top it off, I am being hounded now for the repayment of my education loan,” he said. He is presently jobless as all potential employers want his degree to be approved by the government.

Loans being defaulted

Nachimani has obtained study loans from MIC study loan agency MIED for both his degree and post-graduate studies. Now the agency is after him for repayment. In fact he has been sent a lawyer’s notice warning him of bankruptcy proceedings if he failed to cough up total sum.

“I borrowed about RM37,000 for my studies and with interest the outstanding amount stands at RM52,582.60. Monthly repayment comes about RM620. How can I repay when I have no work?” he asked.

He said that wherever he turned for help – from Tafe college to MIED, the only response he got was to go to Samy Vellu.

“But he has been unable to help me,” said an exasperated Nachimani. Samy Vellu could not be contacted for comment today.

“I have been cheated by Tafe. The college did not tell me and the other students the truth and they should correct their mistake.

“I want MIC, its president Samy Vellu and the college to come out with a solution for me. I am not going to be made a bankrupt for something which was not my mistake.

“I want my life back,” said Nachimani.