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Wednesday, May 12, 2010

Ex-MIED chief charged with RM4m cheating

FULL REPORT KUALA LUMPUR: Former Maju Institute of Educational Development (MIED) CEO P Chitirakala Vasu was charged with three counts of cheating to the tune of RM4 million at the Kuala Lumpur Sessions Court this morning.
She claimed trial before judge Azizah Mahamud and has been released on a RM30,000 bail. The case will be mentioned again on June 14.

Chitirakala, 39, of Shah Alam, was charged with cheating former MIC treasurer-general M Mahalingam, 74, who was a director and signatory of MIED Sdn Bhd, by inducing him to sign three cheques for RM1 million, RM1 million and RM2 million.

She is alleged to have deceived him into believing that the payments, which were made to Silver Line Services Sdn Bhd, were loan repayments to one Abdul Rashid Manaf, 64.

The offences were allegedly committed at the MIED, the education branch of the MIC, at Menara Manickavasagam on Jan 9, Jan 30 and May 3, 2007.

If convicted, she faces a maximum 10 years jail and whipping and liability of a fine on each charge.

Deputy public prosecutor Kevin Morais offered bail of RM30,000 in view of the huge amount involved and the seriousness of the offence.

Defence counsel Saseedharan Menon asked for lower bail, saying that Chitirakala had assisted the police in their investigation but Morais said he had received a report which said that Chitirakala was uncooperative and did not present herself during the investigation.
Arrested yesterday
She was arrested yesterday by the Malaysian Anti-Corruption Commission (MACC) over this matter.

She had been under investigations following a police report lodged by MIC officials for alleged criminal breach of trust amounting to RM5.25 million.

Chitirakala, a former blue-eyed girl of MIC president S Samy Vellu, had a fallout with the veteran leader following alleged misappropriation of funds from the Maju Institute of Educational Development.

She was the chief executive officer of MIED, an education arm of MIC which was involved in giving out scholarships for needy Indian students as well as the main body which oversaw the party's Aimst University.

The party had then lodged a police report over the missing funds as well as missing MIED files.

This was the followed by the removal of the party's long serving treasurer Mahalingam, who was a MIED cheque signatory.

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