Thursday, July 30, 2009

MAIKA a never ending headache for MIC and Samy Vellu

MAIKA Holdings Bhd (MAIKA) was formed single handedly by Dato Seri Samy Vellu. It is a brain child of DS Samy. MIC of which DS Samy is the President encouraged fellow Malaysians to buy shares in Maika for it to be involved as an investment company. Over RM106 million was collected from the over 66 thousand Indian Malaysians.

The formation of MAIKA was to bring real changes to the Malaysian Indians who were lagging behind in all aspects economically. In 1984 the total equity holding of the Malaysian Indians was hovering around 1% of the economy. MAIKA was supposed to enhance the equity state to at least 7%. Handsome dividends were to be declared yearly

DS Samy assured shareholders that their investments in MAIKA will enhance their economic standing in Malaysia. In reliance of these promise, Indians especially from the lower middle class and the working and estate laborers bought shares in MAIKA. Many of these share holders had to mortgage their properties, sell jewelleries or their borrowed from the Banks to buy these shares.

When it started operations, Maika had one of the biggest cash reserves among Malaysian companies. At a time when business conglomerates like YTL, Berjaya, Malaysian Mining Corps, etc were practically unknown entities, Maika was already well known and if properly managed, would have been a billion dollar company now.

All the above promises were not kept. MAIKA has been mismanaged to the extend it can’t even pay dividends yearly and its capital has shrunk over the years.

In February 2007, when I met S Vell Paari, CEO of MAIKA Holdings, he had promised to return the investment to the shareholders within 3 months.
So many 3 months have since passed, yet there has been no payment.
The shareholders therefore demand to know why the promise has not been kept.
They also want to know why no Annual General Meeting for MAIKA Holdings has been held for the last 3 years.
MIC President Dato S Samy Vellu has said before that MAIKA issue had caused MIC to do badly in last year's March general election.
History will repeat itself. MIC will suffer again in the next general election if MAIKA issue is not solved immediately.

In fact, I will not be surprised if MIC is totally wiped out in the next general election because of its failure again to solve this issue.

DAP and other Pakatan Rakyat leaders will be leading a delegation to meet with Vell Paari tomorrow to ask him as to when the investment will be returned to the shareholders

The shareholders have a right to demand answers as well as return of their money. They must not be greeted tomorrow with vulgar words, hurling of abuses or violent behavior by any group of uncivil persons specially arranged to be present .

Read more at : http://www.malaysiakini.com/news/71911

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