PKR points to false claims in AIMST audit report

PKR today revealed excerpts of an audit report on the MIC-owned AIMST University, which it said shows that a company "cheated" the university to "enrich" several MIC leaders.

PKR national strategy and policy bureau secretary S Gobikrishnan said today the audit report showed that Jaya Café Holdings Sdn Bhd, which runs the AIMST cafeteria had, among others, submitted a "false claim" of RM90,000 for catering.

The report also showed that Jaya Café received a subsidy of up to RM1.97 million for student meals and housed its staff for free at AIMST's student apartments.

The reason for this special treatment, Gobikrishnan said, was the fact that Jaya Café is not only owned by Penang MIC Youth leader J Dhinagaran but that its directors were "nominees" of two other MIC leaders, including MIC Youth chief T Mohan.

"Now, it is clear why privileges and preferential treatment were accorded to Jaya Café Holdings. It was a company set up by (the MIC leaders) to benefit immorally from such a profitable cafeteria contract," Gobikrishnan told a press conference.

Malaysiakini is withholding the name of the other MIC leader pending the leader's response.

Police, MACC reports planned 

“If no answers are forthcoming in the next few days, PKR will proceed to file a police report and also with the Malaysian Anti-Corruption Commission (MACC) against all those involved, including the staff of AIMST University,” Gobikrishnan said.

He had more information to link the scandal with the son of a former top MIC leader, he said, and would reveal this at his next press conference.

According to a search with the Registrar of Companies, the PKR leader said, one of the directors of Jaya Café, alleged to be Mohan's “very close relative”, was 24 years old when the lucrative deal was given to the cafe.

Asked how the director was related to Mohan, Gobikrishnan said: “I will not reveal how they are related until (the MIC leader) comes forward to deny their relationship.”

However. he added, the audit report notes that another of Jaya Café's directors is a “wife of (another MIC leader's) husband's brother”.

Spurious invoice
According to the said audit report dated May 18, 2009, Jaya Cafe had submitted a “spurious” claim for RM90,000 for a catering event for 2,000 people, which was actually provided by one Scoop Events.

“It appears that Jaya Café would have plucked the figure of RM45 per person based on the quotation from Scoop Events and raised an invoice for providing food and beverage for 2,000 guests,” the report read.

Another audit report, allegedly by the same company, Gobikrishnan said, showed that Jaya Café was also given “preferential treatment”.

He said the report noted that Jaya Café was given an offer letter for the deal on Jan 5, 2007, and  it commenced work immediately, but the acceptance letter was only signed on March 14, 2007. No contract was never signed.

The auditor also found that Jaya Café was paid RM300 a month a student for the supply of three meals a day for the years 2007, 2008 and 2009.

However, the students were only paying RM240 a month for food, indicating that a subsidy of RM60 a  month a student was paid by MIC's education arm MIED.

“Why the need for this subsidy when the profit made by Jaya Café is over 60 percent?” Gobikrishnan asked.

He said the auditor found that Jaya Café was also supposed to undertake cleaning services as part of the deal, but this was later done by another company for a fee of RM192,000 for 2008 and 2009.

He added that Jaya Café also used AIMST's commercial kitchen free of charge and housed its staff at the housing complex for students from 2007 to 2009.

The student housing apartments would have earned AIMST RM111,825 for the years 2007 to 2009 in rental revenue.

“Based on the above figures, it cannot be denied that privileges are being given to Jaya Café by MIED Capital. Why?” the auditor asks at the end of the report.

Mohan denies any involvement with company 

Meanwhile, when contacted, Mohan said that is true that he is related to one of Jaya Cafe’s directors, but denies any involvement with the company.

“I don’'t deny that she is my relative. Most of the Indians in Malaysia are my relatives or friends. But she is not my nominee. I have nothing to do with the company.

“If she wants to set up something then it’s up to her. Gobikrishnan is really mentally out,” he said, adding that he is “ever ready” to face any police report or MACC report against him.