'Maika injunction is to protect shareholders'

The only reason Koperasi Nesa Pelbagai Bhd is not withdrawing its injunction against MIC's Maika Holdings from selling its cash cow insurance company is to protect the interest of the shareholders of the investment arm.

The injunction is still in place to ensure that Maika shareholders, especially the minority shareholders, are not cheated of their money, said the cooperative's chairperson and former MIC deputy president S Subramaniam today.

"I have always maintained the stand that we will withdraw the injunction if Maika can show us that it has a better offer on hand," he told Malaysiakini.

He said that he was not prepared to allow Maika to sell Oriental Capital Assurance Bhd (OCAB) to engineering firm Salcon Bhd for RM129.8 million.

"I think that amount is under-valued. That's why we want them to do another valuation," he added.

Both Subramaniam and Nesa are shareholders in Maika.

He also said that another factor that must be considered is for the sale of the insurance company to be given to an Indian buyer.

"This will ensure that the sale does not further erode the Indian equity share," he said.

He said that these two issues were necessary so that the shareholders are given back a good and proper return for their investments in the party's investment arm.

Subramaniam said that Maika chief executive officer S Vell Paari and his father, party president S Samy Vellu must ensure that a good deal was obtained with the sale of the insurance company.

"We want them to make sure that the shareholders, especially the minority shareholders, are protected," he said.

They're confusing the people

He said that if Nesa lifts the injunction now, the insurance company would be sold off at any price and this would not be in the interest of the shareholders.

"This is the issue at the moment - we want a better price for the insurance company and they just want to sell it off (at any price).

"We cannot allow the company to be sold at whatever price they deem fit... let's get a new valuation and let's find a buyer. If they can't do it, I'm ready to help," he said.

Subramaniam has come under fire from both Samy Vellu and Vell Paari over his decision not to withdraw the injunction which is hampering the sale of the insurance company.

Both Samy Vellu and Vell Paari had said that the injunction was the stumbling block in returning investments to Maika shareholders.

The latest salvo against Subramaniam came yesterday with Vell Paari stating that he would be leading a group of shareholders to march to Nesa's office in Sentul, Kuala Lumpur on July 30.

The march is "to protest their (Nesa's) decision to keep the shareholders unpaid".

"The shareholders must know that it is not me or the Maika board which has stopped the sale. The blame must go to Nesa," he had said.

Commenting on this, Subramaniam said that Vell Paari was trying to shift the blame to confuse members of the public and the Maika shareholders.

"To say that it's our fault is a weak attempt to hide the truth. They just want to shift the blame.

"I have repeatedly stated that I will lift the injunction when there is a better buyer but there has been no response from them. Bring in a better buyer, I will lift (the injunction)," he said.

Giving the protesters free drinks

On Vell Paari's decision to march to Nesa office to protest, Subramaniam said: "Nesa has nothing to hide... you can march here, we will prepare ‘moor panthal' (free buttermilk) for them."

Maika was established in 1982, purportedly to enable Indian Malaysians to have a share in the country's economic growth.

It raised RM106 million from 66,000 investors.

The investment company, however, has been a flop with many of its business ventures failing to take off, leaving the investors on the lurch.

Finally in an attempt to pay out the shareholders, Maika's board decided and obtained the approval of the shareholders in 2007 to sell its only money-making venture, the insurance company.

However before the sale could be finalised, Nesa had obtained the injunction to stop the sale, ostensibly to protect the minority shareholders.

Vell Paari had explained on numerous occasions as to why the sale was necessary and why it had been difficult to comply with the conditions set by Subramaniam.

Stop the defections

On another matter, Subramaniam disagreed with Samy Vellu on the impact caused to the party by the defection of former vice-president SS Subramaniam to PKR.

"Any member leaving is bad for the party as it will not strengthen the party," he said.

He hoped that there is no huge exodus of members from the party to the opposition, adding that appropriate action must be taken to stop members from leaving.

He added that he will be doing his part by talking to the members to remain in MIC to make the party strong again.

Yesterday, Samy Vellu had said that MIC was not affected by the former vice-president's departure.

"We don't see it as a loss. In fact, what he has done is a 'good thing'," he said.

SS Subramaniam joined PKR on Saturday along with 10 MIC branches in the Klang Valley.

Former deputy president and Nesa chief Subramaniam is on a running battle with Samy Vellu.

A fragile peace-deal crumbled after Subramaniam decided to challenge incumbent deputy president G Palanivel at the party polls in September.

Palanivel kicked out Subramaniam from the post at the last party polls with the backing of Samy Vellu. He has once again received the patronage of the president to retain the position.

Subramaniam previously failed in two party electoral attempts to dislodge Samy Vellu as the president.