G Team must reveal all proceeds from sale of MAIKA 's 74.2% stake in Oriental Capital Assurance (OCA)


Media statement by M.Kula Segaran MP Ipoh Barat and DAP National Vice Chairman in Ipoh on 22ndMay 2012.


G Team must reveal all proceeds from sale of  Maika's 74.2% stake in Oriental Capital Assuarance (OCA) 


In April 2010 at a press conference G Team chief Tan Sri Gnanalingam announced that his special purpose company G Team Resources has offered to buy out MAIKA Holdings (MAIKA) 66,000 shareholders for a total of RM106mil.

He also said the crown jewel of Maika Holdings, OCA will also be sold only to an Indian concern and the proceeds, minus the RM106 million and cost of the Maika exercise, would be distributed to Indian based charities.

We are holding him to his word to reveal all details of the sale of OCA to Tune Ins Holdings Sdn Bhd,a company believed to be owned by Tony Fernandez, for RM1.96 a share.

Now it become to public knowledge that this company Tune Ins is proposing to buy over OCA at RM1.95 per share.

We would like to know:
           
1)will Tan SriGana’s G Team Resources use it as profits for its own use? or
2)will the windfall be dispersed out to NGO’s and for charitable purposes? or
3)Will the monies be ploughed back to the share holders as the majority of the 66 thousand share holders have loss thousand of ringgit due to the earlier mismanagement of MAIKA
In less then two years of the take over by G Team Resources of MAIKA, a handsome amount may have been realised by G Team from sale of OCA.

MAIKA was incorporated in 1982 by Malaysian Indian Congress (MIC) . The then Minister Dato Seri Samy Vellu traveled the whole breath of the country and encouraged the poor Indian to buy shares in MAIKA.

Many Indians were carried away with the promises of good returns on the purchase of shares daringly invested in MAIKA. Many of these Indians were from the lower income group who sold and or mortgaged their personnel items like land gold and jewelries and even goats and cows was not spared.

It has been said that in 1983 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 if not for bad management and poor investment decisions.

In spite of a number of major acquisitions made into some important companies – like the United Asian Bank (UAB), United Oriental Assurance (UOA), Malaysian Airlines System (MAS), Malaysian International Shipping Corporation (MISC), TV3 and Edaran Otomobil Malaysia Bhd (EON) – Maika’s performance was mediocre”

Maika was a failure from day one. The dismal performance of MAIKA’s business deals began to hurt MIC and it became a very huge embarrassing issue for MIC. In the 2008 elections even its President and Minister founder Samy Vellu was defeated in the General elections.

Prior to the General Elections Samy had promised to return RM1.30 for every MAIKA share of RM1.00. His promise never materialize.

PM Najib upon assuming office in 2009 is trying to sort out issues which were plaguing the Indian community. He set up a Cabinet Committee and Special Implementation Taskforce aimed at helping the Indian community. The co-chairman of this special committee is Tan Sri Ganalingam.

Thus Tan Sri Ganalingam become the “white knight” to help rescue MAIKA share holders. With a stroke of pen MIC and BN wanted MAIKA out of the issue of house hold talk.

The jewel of the crown of MAIKA was Oriental Capital Assurance (OCA) where MAIKA had a 74.2% stake. Prior to G Teams take over of MAIKA Salcon Bhd had proposed to buy the stake at OCA but was cancelled due to an injunction on the sale by NESA a cooperative of Datuk Subra the former Deputy Minister.

OCA was the only insurance company which was controlled by the Indian community. The disposable of MAIKA had severly damaged the pride of the Indian community, and now the final act in the betrayal is takign place with the sale of OCA.

We want Tan Sri Ganalingam to immediately reveal in detail all the "handsome" profits that will be obtained with the sale of  OCA.

There after it would be good if the former share holders who had suffered loss by investing into MAIKA be compensated with the distribution of the “handsome profits”
As the vast majority of the 66 thousand share holders are from the lower income group it will mean a lot if the “profits” be channeled back to the original community.

  

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