Bujang Valley: Earliest civilisation in S-E Asia

Bujang valley continues to amaze historians

Bujang Valley, one of several Indianised kingdoms in Southeast Asia, existed long before neighbouring empires such as Majapahit (1200 AD) and Sri Vijaya (700 AD).

International historians observe archaeological excavations at the site of the 2,000 year old Bujang Valley civilisation in Sungai Batu, Kedah. They have described the man-made structures – the oldest thus far recorded in South-east Asia – as the most pivotal find in the region in the last few decades.

The Bujang Valley in Kedah, where the oldest recorded man-made buildings in South-East Asia have been discovered, continues to be a source of amazement to historians and achaelogists.

Some of the world’s top historians converged at the archaeological site to survey excavation works for the 2,000-year old civilisation which has been hailed in the last few decades as “the most important civilisational find in the region.”

The civilisation there is now known to have existed long before neighbouring empires like Sri Vijaya (700AD) and Majapahit (1200AD).

It was reported that Malaysian archaeologists had unearthed a 1,900-year-old monument, scientifically dated to 110 AD, built with detailed geometrical precision in Sungai Batu, Kedah.

The monument, which faces the Gunung Jerai mountain, the highest peak in northern Malaysia, is believed to be have been used for ritualistic purposes.

The monument was found surrounded by remnants of advanced iron smelting facilities equipped with furnaces as well as brick jetties built along a river bank.

Dr Stephen Oppenheimer of Oxford University’s school of anthropology described it as “the earliest monumental site” that showed an important role as an industrial and trading centre.

“This is one of the most important finds in South-east Asia for the last couple of decades,” he said.

India’s Gujarat State Archaeology Department director Yadubirsingh Rawat said there was now indisputable evidence that international trading activities had taken place here in that period.

“The settlers here had full knowledge of iron smelting and jetty construction. This means they must have been connected to other places in the world,” he said.

“The discovery shows that the Bujang valley contributed significantly to maritime trade in the region,” he added.

Also found with the monument were various pottery and a Buddhist tablet with Pallava-Sanskrit inscriptions likely to have been made in the 5th century AD.

The discovery, by the Centre for Global Archaeological Research (CGAR) of Universiti Sains Malaysia (USM), was made within a three sq km area where a total of 97 mounds have been found. Thus far only 10 have been excavated.

Dr R. Nagaswamy, former director of the Tamil Nadu Archaeology Department said the western coast of peninsular Malaysia was likely a central point in the sea route of international trade in that period.

“From this we not only gain a deeper understanding of the country, but also of world history,” he said.

He also noted that Kedah had attracted rulers from South India, such as the Chola kings, to send their armies there in the 11th century.

The experts are in Malaysia for a conference on the Bujang Valley.

CGAR had announced last week that it had recently uncovered a new site in Jeriang, Kedah, comprising seven ancient furnaces once used for smelting of iron.

New estimates now show that the Bujang Valley settlement covered an area of about 1,000 sq km, mostly around Gunung Jerai, and not just 400 sqkm as previously believed.

Dated 110 AD, the newly discovered Sungai Batu monument in the Bujang Valley is the oldest recorded man-made building in South-east Asia.






Bujang Valley

S-E Asia’s oldest monument in Bujang Valley

The Bujang Valley rises at last.......

The oldest building to be recorded in Southeast Asia has been discovered in the Bujang Valley. It is a clay brick ritualistic monument that has been dated back to 110 AD.

THE next time you happen to be anywhere near the northern side of Penang or the southwestern stretch of Kedah, turn your gaze northward; you will see in the horizon the silhouette of a large mountain with a sharp peak.

Most of us have taken Gunung Jerai, also known as Kedah Peak, the highest mountain in northern Malaysia, for granted. However, a few of us are conscious that some of the most historic discoveries in Southeast Asia are now being made around the mountain’s surroundings.

Almost every country in Southeast Asia has at least one ancient monument that has served as a source of pride for its people who view it in awe, as an important part of their roots. Indonesia, for example, has the magnificent Borobudur (8th century AD), Cambodia has the Angkor Wat (11th century AD) and Vietnam has the Siva-Bhadresvara Temple in My Son (4th century AD).

Little do we know that peninsular Malaysia has also been home to an incredible set of age-old structures, which though not as large as the other well-known monuments in the region, are impressive enough for their sheer numbers in the area named the Bujang Valley.

Since as far back as the 1840s, archaeologists have been unearthing remnants of a civilised settlement that existed in the Bujang Valley from around the 8th century AD to the 13th century. More than 80 sites have been uncovered with structures like the candi, a religious building with Hindu-Buddhist elements, most prominent among the findings.

Of these, the famous Candi Batu Pahat still stands glorious, as it did more than a thousand years back, near the Muzium Lembah Bujang in Merbok. Together with the structures, archaeologists also found hundreds of pottery, implements, beads and figurines.

Incredibly enough, although the archaeological works have been extensive and intense, little is known or even told about this ancient civilisation, veritably the cradle of Malaysia.

But a new discovery made about two years ago is set to change the invisibility of the Bujang Valley among our public. Archaeologists have discovered at least 97 ancient sites around some oil palm estates in Sungai Batu. So far only 10 have been uncovered.

And what they have revealed are propelling the rewriting our land’s recorded history and what is being taught to our children in schools. The discoveries point to evidence that the Bujang Valley civilisation existed 2,000 years ago, long before neighbouring empires such as Majapahit (AD1200) and Sri Vijaya (AD700).

At the heart of the findings is a perplexing clay brick ritualistic monument that has been dated back to AD110, making it the oldest man-made building to be recorded in Southeast Asia.

The Sungai Batu monument and its surrounding structures – including ancient jetties and iron smelting workshops – point to an advanced culture pre-dating many Indianised kingdoms in Southeast Asia. Also found with the monument were various pottery placed ceremoniously around, and a Buddhist tablet with Pallava-Sanskrit inscriptions likely to have been made in the 5th century AD.

An extensive research is being done by the Centre for Global Archaeological Research (CGAR) of Universiti Sains Malaysia to determine how advanced the little-known civilisation – known variously in historic annals as Kataha, Kidaram and Chieh-Cha – was. Just this week scholars from around the world converged at the Bujang Valley to express amazement at the discovery and how it is reshaping understanding of the region’s history.

Long before the empire of Malacca, there was already this powerful trading settlement in Kedah, which just happened to mysteriously disappear. But the secret of its existence cannot be held back any longer. The legacy of the Bujang Valley has risen at last. And it now promises to fully gain our attention, to reclaim its stature that is long overdue; just as it did among the early people of this land who lived around the majestic Gunung Jerai many centuries ago.





Himanshu is theSun’s Penang bureau chief.

Malaysian Indian Society in Ferment - Revisiting facts

The unprecedented demonstration by Malaysian Indians before the British High Commission in Kula Lumpur at the end of November 2007, under the sponsorship of the Hindu Rights Action Force (HINDRAF), has brought into sharp focus the pathetic situation in which the Indian community finds itself today.

The HINDRAF is a coalition of 30 non-governmental organizations, committed to the preservation and promotion of the Hindu identity. The coalition had been agitating against what it calls the unofficial policy of temple demolition and the steady introduction of Sharia-based law.

The Memorandum, submitted to the British High Commission, demanded that the United Kingdom should move an emergency resolution in the United Nations condemning the ethnic cleansing taking place in Malaysia. It also appealed that the issue should be referred to the World Court and International Criminal Court of Justice for crimes against its own ethnic minority Indians.

In August 2007 the Malaysian Indians had approached the Royal Court of Justice demanding compensation of US Dollars 4 Trillion, which works out to US Dollars one million to every Malaysian Indian, for bringing their forefathers as indentured labourers and failing to protect their rights and interests on the eve of Malayan independence.

The Malaysian Government, true to its authoritarian traditions, refused permission to hold the rally, arrested the leaders and used tear gas and water cannon to disperse the nearly 35,000 demonstrators.

The leaders of the HINDRAF should know that historical wrongs perpetrated during the colonial era, like the indenture system, cannot be undone. Presumably their objective was to highlight the increasing marginalization of the Indian community in the social, economic, political and cultural life of Malaysia.

A Malaysian Indian student, Ananthi, a Rhodes Scholar, reading for her PhD in Oxford University, echoed the feelings of the overwhelming majority of her community, in a letter widely circulated in Malaysia. To quote Ananthi, it was about being neglected, about not having a seat at the table to bargain, about having a national and communal leadership that we do not trust and is utterly discreditable. It is about saying no to being the forgotten Indians, and not enough of us in our comfortable houses, those of us who worked to manage to work the system to our benefit stood with the other Indians, who are not so different from us.

For the first time, the marginalized Malaysian Indians displayed the power of Makkal Shakti (people's power).

This paper is divided into two sections. The first deals with the changing political dynamics in Malaysia and the second analyses the factors that have led to the marginalization of the overwhelming sections of the Malaysian Indian community.

It has been rightly said that every issue in Malaysia, whether political, cultural or economic, had always been and would continue to be dominated by ethnic considerations. The entire political system is based on communal politics. The ordinary Malaysian grows up and lives under a pervasive communal atmosphere. While ethnicity would continue to dominate, the nature of political discourse is changing from time to time, depending upon the changing political dynamics. In order to put the issues in proper perspective, it is necessary to highlight certain political realities.

The Malays feel that they are the indigenous people (Bumiputra) and, therefore, they have a special claim for dominance in the political and cultural life of the country. The British colonialists upheld this claim and ruled the country in the name of Malay Sultans, on whom sovereignty vested.

At the same time, as part of imperialist objectives, the British also encouraged large-scale immigration of Chinese and Indians for the economic exploitation of the country's natural resources. The existence of a plural society prevented the growth of anti-British feelings and a sense of common nationalism in Malaya before the Second World War. As the English novelist Somerset Maugham wrote, Malaya was a first rate country for third rate English men?

The political awakening of the Malays, in the immediate aftermath of the Second World War, following the introduction of the Malayan Union Proposals (a unitary state to which the Sultans were to cede their sovereignty) and the unity that they forged under the United Malays National Organisation (UMNO) had far reaching consequences. Not only did it compel the British to withdraw the Malayan Union proposals, it also clearly revealed that the Malays would never give up their pre-eminent position in the political life of Malaya.

While in later years, the Malay leaders did co-operate with the Malayan Chinese Association (MCA) and the Malayan Indian Congress (MIC), in the larger interests of Malaya as a whole, the dynamic leadership of Malayan nationalism has always remained in Malay hands. The Alliance, which was voted to power in 1955, was not an alliance of equal partners; it was an alliance in which the supremacy of the Malays was clearly established. The transformation of the Alliance into Barisan Nasional in the 1970's, with the incorporation of various Malay and non-Malay political parties, further reduced the political clout of the MCA and the MIC.

On the eve of independence in August 1957, the Malays and the non-Malays were roughly equal in numbers (Malays 49.8 per cent, Chinese 37.1 per cent, Indians 11.1 per cent and the others 2.0 per cent). Over the years the demographic structure has radically altered to the advantage of the Malays. Higher rate of natural increase and large scale immigration of Indonesian Malays have contributed to the burgeoning of Malay population.

The Bumiputras (Malays plus the indigenous people of Sabah and Sarawak, which were incorporated into Malaysia in 1963) constitute nearly two thirds of the population; the Chinese constitute 23.7 per cent and the Indians 7.1 per cent.

An important clue to the understanding of the political economy is the social and political contract arrived by the elite of the three communities on the eve of independence. It was assumed that the economic predominance of the Chinese would be offset by the political supremacy of the Malays.

It was believed that with the passage of time this equilibrium would give way to a more balanced one, the Malays would play a greater role in the economic life and the Chinese and the Indians would play a greater role in politics. The pre-eminent position of the Malays was enshrined in the Constitution and the retention of the Malay Sultanate, the acceptance of Islam as the State Religion, constitutional provisions safeguarding the special rights of the Malays and the acceptance of Malay as the national and official language. The major concession made to the non-Malays was the conferment of citizenship on them.

The fragility of the Malaysian political system came out into the open on May 13, 1969, when following the reverses suffered by the Alliance in the general elections, large-scale Sino-Malay clashes took place in Kuala Lumpur. Emergency was proclaimed and when democratic process was restored after amending the Constitution, Malay political power was further entrenched.

The Royal Commission appointed to enquire into the riots was of the view that the crisis was due to the disenchantment and frustration of the Malays, who had not enjoyed the fruits of independence. In 1970, Malay corporate ownership was a meager 2.4 per cent, compared with 63.3 per cent enjoyed by the foreigners, 22.4 per cent enjoyed by the Chinese and 10.0 per cent by unknown parties. While the overall poverty incidence was high, 51.2 per cent in 1970, 76.0 per cent of them were Malays. A New Economic Policy (replaced by National Integrity Plan in 2004) was launched to bring about economic transformation, with particular emphasis on the development of the Malays.

In the political sphere, democratic rights were curtailed, it was made a seditious criminal offence to challenge the special rights conferred on the Malays, the language provisions in the Constitution, institution of Sultanate and citizenship laws.

Under the leadership of Prime Minister Mahathir (1981-2003) Malaysia underwent a fundamental transformation. From being a producer of primary commodities, it had become an industrialized country, virtually an economic power house in the ASEAN region.

Despite occasional hiccups, for example, during the Asian economic crisis, the country registered an economic growth averaging 8.0 per cent. The absolute poverty level came down from 51.2 per cent in 1970 to 7.0 per cent in 2000. By 1990, the Malay share in the corporate capital went up to 19.2 per cent, Chinese 46.8 per cent and the Indians 1.5 per cent, the nominee companies 8.5 per cent and the balance owned by the foreigners. What further endeared Dr. Mahathir was his strong criticism of American foreign policy in West Asia and Southeast Asia.

The negative side of the story was increasing authoritarianism. In addition to continuing criticism of the non-Malays about the pro-Malay and pro-Islamic policies of the government, the discontent also spread to Malay middle class.

The first to raise the banner of revolt was Tunku Razaleigh Hamzah, who in 1987 formed a secular Malay party, Parti Sengamat 46 (Spirit of 46). Subsequently Razaleigh was readmitted into UMNO.

Far more important was the revolt led by Anwar Ibrahim in 1998, who formed a political party called Kedilan (Justice Party) under the leadership of his wife. The unfair trial of Anwar Ibrahim, coupled with the third degree treatment meted out to him, has earned him considerable good will in Malaysia and abroad. After his release, Anwar Ibrahim started speaking in a more democratic idiom, for widening the democratic space, tolerance of dissent and the establishment of a truly pluralist society, with emphasis on redistributive justice. He was prepared to champion the non-Malay cause when he promised to abolish the New Economic Policy and to promote equality for all.

The cumulative effect was the ruling Barisan Nasional suffered serious reverses in the general election held in March 2008. In the 12th general election, the UMNO and its coalition partners in the Barisan Nasional suffered unprecedented reverses. It lost its two third majority in parliament. What is more, it was removed from power in four states - Kedah, Perak, Penang and Selangor besides failing to regain power in Kelantan.

What is more, Anwar Ibrahim re-entered parliament by winning the by election in the Permatang Pauh, with a huge majority. Anwar Ibrahim is openly making a bid for power by enticing ruling party members of parliament into his fold. Another important consequence was the decision of Prime Minister Abdullah Ahmad Badawi to expedite the transfer of power to his deputy Najib Abdul Razak.

An important political reality must be highlighted. It is extremely difficult for opposition parties to function in Malaysia. The dracnonian Internal Security Act, which provides for detention without trial, has been frequently used against opposition leaders, Malay and non-Malay alike.

The Internal Security Act is inhuman, because it denies the victim a fundamental human right, the right to a fair trial. Anwar Ibrahim underlined some of the evils of the Malaysian political system in an international conference in New Delhi, few months ago, what is an election if the political parties in the opposition do not have access to freedom of speech, assembly and movement, necessary to voice their criticisms of the government openly and to bring alternative policies and candidates to the voters?

Where I come from, the opposition is barred from the air waves, rallies are not allowed and opposition newspapers operate underground? Prof. Harold Crouch, an astute observer of the Malaysian political scene, has remarked, it is hard to place Malaysia in a clear cut category between democracy and authoritarianism? He concludes Malaysia is neither democratic nor authoritarian ?as the Malaysian political system has been oscillating between repression and responsiveness?

Let me now take up the second part of the essay dealing with the complex issues relating to the marginalization of the vast majority of Malaysian Indian community.

At the end of the Second World War, the Indians (the term today includes Indians, Pakistanis, Nepalis, Bangladeshis and Sri Lankans) constituted about 14.0 per cent of the population of Malaya. Number of them returned to India during the years of the communist insurgency and the dark days following the communal riots in May 1969.

By 2,000, Indians numbered 1.8 million, representing 7.7 per cent of the total Malaysian population of 21.89 million.

According to the Singhvi Committee Report, the total number of Indians in Malaysia is 1,665,000, of which 1,600,000 are Malaysian citizens, 15,000 are non resident Indians and 50,000 are stateless people. Approximately, 80.0 per cent of them are Tamils; followed by North Indians (mainly Sikhs) 7.7 per cent; Malayalis 4.7 per cent; Telugus 3.4 per cent; Sri Lankan Tamils 2.7 per cent; Pakistanis and Bangladeshis 1.1 per cent and others 0.4 per cent.

As far as religion is concerned, Hindus number 81.2 per cent; Christians 8.4 per cent; Muslims 6.7 per cent; Sikhs 3.1 per cent; Buddhists 0.5 per cent and others 0.1 per cent. In the specific context of Malaysia, where Islam, the religion of the Malays, is the State religion, sections of the Muslim community of Indian origin have got assimilated into the Malay society.

We should make a distinction between the middle class (mainly non-Tamils and Sri Lankan Tamils) whose standard of living is fairly high and the working class (mainly Tamil) who are poor and getting marginalized.

The Indians, especially Tamils from the Madras Presidency, were the preferred labourers to develop the rubber plantations, because they displayed unquestioned loyalty and obedience, content with what they earned and were non-rebellious by nature. Most of them continue to be weighed down by low esteem, which is worsened by lack of interaction between the well-off and the less well-off sections.

A notable feature of the Indian community is its changing socio-economic profile. In 1970, 47 per cent of the Indians were engaged in agriculture, 74 per cent of them in the plantations.

With rapid economic expansion and diversification of the economy, the plantations have been converted for other purposes, including the construction of luxury homes. The uprooted Indians were only paid a pittance as compensation. They naturally migrated to urban areas and joined the squatter population.

Few years ago, Samy Velu, the President of the Malaysian Indian Congress (MIC), deplored the plight of thousands of estate workers living in squalor in slums in dozens of long-houses and squatter settlements all over Selangor?

Aliran, the well-known journal of the Malaysian reform movement, provided statistical details, few years ago, which made alarming reading. 40 per cent of the serious crimes in Malaysia are committed by the Indians; there are 38 Indian based gangs with 1,500 active members; during the last few years, there had been a hundred per cent increase in the number of Indian gangsters; Indians recorded the highest number of those detained under the Emergency Regulations and banished to Simpang Rengam prison.

In the field of social woes, it is the same story. In Kuala Lumpur, 14 per cent of the squatters are Indians; they have the highest suicide rates; 41 per cent of the vagrants and beggars are Indians; 20 per cent of the child abusers are Indians and also 14 per cent of the juvenile delinquents.

The communal clashes that took place between the Indians and the Malays in Kuala Lumpur in March 2001 sent shock waves throughout Malaysia. It was the worst ethnic riots since the communal clashes in May 1969. Ethnic tensions in Malaysia are mainly due to Sino-Malay rivalry; but the Indian involvement in 2001 riots (five of the six killed were Indians and the other was an Indonesian) was a sad reminder that in Malaysia's progress towards prosperity, the Indians were being left behind.

The disadvantaged status is clearly visible in the economic sphere. The Chinese are firmly entrenched in trade, business and industry. They are reconciled to the subordinate status in the political life of the country; at the same time, they have sharpened entrepreneurial skills and have become indispensable.

The status of the Malays has steadily improved as a result of the energetic drive of the Malaysian Government since the introduction of the New Economic Policy. In 1970, the Indians owned only 1.0 per cent of the share capital in limited companies, while the Chinese controlled 22.5 per cent, Malays 1.0 per cent and the rest being held by the foreigners.

At the turn of the century, the Indians held only 1.5 per cent, compared to 19.4 per cent of the Malays and 38.5 per cent of the Chinese, the balance being held by the foreigners.

The deplorable status of the Tamils is directly related to poor educational attainments. Though the Malaysian Government has expanded educational facilities in a big way since independence, the fruits of education have not percolated to the disadvantaged sections of Indians population.

The importance of education in the development of disadvantaged sections of population has been highlighted by many writers. It is a means of upward social and economic mobility; an avenue of modernization; an instrument to enrich cultural life and, above all, in the Malaysian context, a means of national unity and integration. The Indians continue to be the most disadvantaged section at all levels of education.

The Tamil medium primary schools are in a deplorable stage. Single teacher handling multiple classes; ill equipped schools with teachers having no commitment and high drop rates are some of the serious drawbacks. The family life is characterized by alcoholism, violence against women and addiction to Tamil TV Channels. They do not provide a congenial atmosphere for study.

As a result, only limited number of Tamil students reaches the university stage. The current intake of Indian students in Malaysian universities is only 6.2 per cent, most of these students hail from non-Tamil and Sri Lankan Tamil sections; the few Indian Tamils, who are lucky to get admission in the Universities, are also from relatively affluent families.

Compounding the complex situation is the general perception that increasing Islamisation of the country and destruction of Hindu temples are posing grave threats to the Hindu way of life. Given below are two illustrations which took place in 2003.

The first related to Shyamala Sathiaseelan. Shyamala's husband got converted to Islam, he gained custody of their two children and had them converted to Islam without the permission of his wife. Shyamala's appeal for help from authorities went unheeded.

The second case involved Murthy Maniam, a convert to Islam, whose dead body was buried according to Muslim rites by the religious authorities despite his widow's claim that he had remained a practicing Hindu until his death. The non-Muslim members of the Malaysian cabinet requested the Prime Minister to provide constitutional guarantees for religious freedom, but their appeal was ignored by Prime Minister Badawi.

Many Hindus also were deeply hurt when, for the first time, the UMNO General Assembly was held during Deepavali.

As Dilip Lahiri, former Indian diplomat has written the UMNO youth leaders brandished and kissed the Kris (dagger) and threatened to shed Chinese and Indian blood if Malay supremacy was challenged.

The Hindus also began to feel that the Government was lukewarm on the sensitive question of destruction of Hindu temples.

As a result, the HINDRAF and allied organizations began to take deep roots in the Hindu community.

In the preservation of the Hindu identity, in the prevailing atmosphere of increasing Islamisation, the temples do play a very big role. The temples and religious festivals are the only visible attachment to traditions and the Hindus cling to them tenaciously.

Needless to say, there is a close nexus between religion and Malay politics. The policies of the Malaysian Government have been double edged. On the one hand the leaders of the United Malays National Organisation (UMNO) are committed to the promotion of Islam in all possible ways.

Dr. Mahathir has mentioned several times that Malaysia is an Islamic State and the Islamic identity is projected in a big way both within the country and outside. Such a policy is necessary to mobilize the Malays under the UMNO banner. Otherwise, the Malays will flock to Parti Islam (PAS) for leadership and inspiration.

At the same time, the realities of Malaysia and the needs of modernization dictate that the Government must encourage a less exclusivist approach towards Islam. When the desecration of the Hindu temples began in 1978, the most horrendous being the destruction of the Murugan temple in Kerling, Prime Minister Hussein Onn came down heavily on the Islamic extremists.

But the situation has been allowed to drift during recent years.

In its Memorandum, the HINDRAF has pointed out that in every three weeks one Hindu temple is destroyed in Malaysia, the most significant being the demolition of the Mariamman temple in Shah Alam.

The Government maintains that most of these temples have been constructed in government owned lands without proper authorization. But the temples have been functioning for many years; strangely there are no reports of the destruction of Chinese places of worship. Is it because the Chinese are more organized and will hit back if their religious beliefs are tampered with?

The question should legitimately be asked to what extent has the Malaysian Indian Congress (MIC), which represents the Indian community in the government, has succeeded in its primary objective of safeguarding the interests of the Indian community?

An Indian observer of the Malaysian scene comes to a dismal conclusion. Factional struggle and disunity had been the major curse of the Indian community.

Since its inception in 1946, fight for power, petty politicking and mud slinging had been its major attributes. The rivalry between Devaser and Sambanthan; between Sambanthan and Manickavasagam; Manickavasagam and Samy Velu; and among Samy Velu, Padmanabhan, Subramaniam and Pandithan; it brings no laurels to the Indian community.

Samy Velu is more interested in ingratiating himself with the Malay leadership rather than championing legitimate Indian interests and aspirations. What is more, self-help measures, initiated by the MIC, with much fanfare, have not led to desired results.

For example, the Maika Holdings Bhd, started in 1982, as an investment vehicle for the Malaysian Indians, incurred heavy losses, resulting in the loss of savings of large number of poor Indians. Frustration and anger against the leadership found expression when the Indian youth began to disturb the functions organized by the MIC; very often Samy Velu was booed and jeered.

How distant the MIC was from the ordinary Indians became evident when the results of the 2008 parliamentary elections were announced. Of the nine MIC candidates of the Barisan Nasional, only three could win their seats, and that too with slender margins, those who were defeated included Samy Velu, the President of the MIC, who lost the Sungai Siput constituency in the Perak State. The emergence of the HINDRAF has to be viewed in the backdrop of the alienation of large sections of Indians, coupled with a non-performing MIC.

The unfortunate events in Malaysia naturally attracted the attention of Indian leaders. Prime Minister Manmohan Singh, Foreign Affairs Minister Pranab Mukerjee and Chief Minister Karunanidhi have expressed concern and regret over the turn of events in Malaysia.

Their objective is not to interfere with the internal affairs of a friendly country, but to influence the Malaysian Government to initiate immediate steps for the redressal of long pending grievances. The Malaysian response has been unfortunate. Representatives of the Malaysian Government, including the Prime Minister, have demanded that the Government of Tamil Nadu should keep off from what it considers to be an internal matter of Malaysia.

What is the record of the Malaysian Government in this respect? As a leading member of the international Islamic organization, the Malaysian Government has sharply criticized many governments for pursuing policies, which have adversely affected the Moslem communities.

The UMNO and the PAS, the two leading Malay parties, have, on several occasions since independence, criticized the policies of the Thai Government which has led to the alienation of the Malay minority in Southern Thailand. The Malay leaders have also criticized the Government of Singapore for pursuing discriminatory policies against the Malay minority in the island. The Malaysian criticism of India, to say the least, is an illustration of the pot calling the kettle black.

The increasing intolerance of the Malaysian Government and its vocal advocacy of OIC sponsored causes have cast a long shadow over India - Malaysia relations.

As the former Indian diplomat, Dilip Lahiri has pointed out, on a range of issues affecting India-Southeast Asia relations, Malaysia had been the most difficult among the member states of ASEAN.

The Malaysian Government is preparing itself to crack down on the HINDRAF; few government spokesmen have started leveling the unsubstantiated charge that the HINDRAF has links with the Tamil Tigers.

The perceptive Indian observers of the Southeast Asian scene remember that when General Rabuka began systematically to discriminate against the Indian community in Fiji, in order to justify himself, he was quoting chapter and verse from Dr. Mahathir's book, The Malay Dilemma.

Few years ago, in Brickfields in Kuala Lumpur, few Indian expatriates, who were working in the IT industry, were rounded up and detained as illegal immigrants, though they had proper documents to prove that they had entered Malaysia through legal channels. The shocked Indian diplomats immediately protested, and the Malaysian Government had to tender an apology for its inhuman behaviour.

Turbluent times are ahead in Malaysia and for the Malaysian Indians.

The Malaysian Indian community is at the cross roads today. If the present situation is allowed to drift and deteriorate, the community would suffer untold damages and would be left behind in the economic and educational advancement of the country. If the present hardships are to be overcome, it is important the Indian community must re-evaluate its role and chalk out a new destiny by sinking its differences and working as a team.

The minority character of the Indian community and its vulnerable position makes such a task all the more urgent and imperative. The Malaysian Government must also view the marginalized and impoverished Indian community with greater sympathy and understanding and ensure that the Indians, to begin with, at least obtain a share equal to their proportion in the population.




(Dr. V. Suryanarayan is Senior Professor and Director (Retd), Centre for South and Southeast Asian Studies, University of Madras)

It is a clever plot to keep the non Malays shackled to their subservient and submissive position to maintain the indefensible dominance of the Malays

First, the British adopted the conventional method of structuring the population Federation of Malay according to its broad racial groupings as Malays, Chinese and Indian and Others.

The Reid Commission provided temporary advantage to the Malays to equalise their economic standing in the community. The Malays wanted this provision of temporary advantage to become permanently entrenched and this is how they went about it cleverly.

First the Malays reinforced the capsulation of Malaysians into their respective racial boundary as Indians, Chinese and Malays. The state recognised individuals not as individuals but as members of racial grouping.

Secondly a system was reinforced to strengthen and fortify these ethnic boundaries (non-Malay communities).

The ethnic communities were tricked to elect their national leaders who will be compliant to the wishes of the domineering Malays.

The Ethnic leaders were bribed with enormous wealth and left unchecked, on condition these ethnic leaders called on the tribal loyalty of the racial grouping to maintain peaceful compliance to the wishes of the Malays for permanency of their privileged unconstitutional status beyond the expiry of the period that was envisaged by the Reid Commission.

The ethnic leaders were happy to assist the Malays to suppress the rights of their non Malay communities, so long as these ethnic leaders continued to receive the state largess, titles, recognition, The masses were fooled into a state of apathy by distraction to cultural activities and temple worship facilities. Their cultural and customary traits were called upon to prevail to maintain tribal loyalty to its leadership which in turn did the bidding of the Malays.

The statutes and the Constitution was amended without protestation to reinforce the dominance of the Malays.

The leaders of the Indians and the Chinese helped to screw their own kind while collecting personal rewards for keeping their own kind suppressed.

This scheme of things began to crack, when HINDRAF emerged to demand their human rights, civil liberties, the fair share of the national wealth and equity in treatment. The Malays with their simple mind could not handle HINDRAF as the new force, so it used brutal force to reign in the leaders of this new socio-economic political force.

HINDRAF has done the right thing to going back to the origin of the problem, the British, to seek relief while the HRP is chipping away at the fortress of racism that was illegally cemented by the Malays.

Surely the fortress will crumble one of these days. The leaders of the ethnic community like Chua and Samy Velu and that of minion race based parties will fade away into oblivion. It now requires of the resilience and determination of the few dedicated HINDRAF members to persist on their human rights as individuals with the collective strength of one voice.

The rights to practice communities’ cultural values and traits are private affairs of the community and the state should not be allowed to intervene for social control. It is our human rights, civil liberties, equitable rights to national wealth that we should demand from the British and the Malays.




By Robert K Chelliah

Anwar, Najib Vie for International Cred

Facing challenges at home, Najib attempts to repair his overseas image to match the opposition leader's.

Since becoming prime minister, Najib Tun Razak has faced serious challenges at home in trying to rebuild the image of his ruling Barisan Nasional coalition amidst the schisms and controversies that have afflicted the three main coalition parties. His task of strengthening and revitalising his coalition has been made much more precarious by the political pressure he has been subjected to by the Anwar Ibrahim-led opposition.

While trying to keep up his political momentum at home, Najib has been trying to also juggle the task of rebuilding his image on the international stage, especially vis-à-vis that of Anwar, who continues to enjoy the international image of both a moderate Muslim and an opposition figure who has been grievously wronged by two trials regarded overseas as trumped up in the attempt to drive him from politics or worse. And if recent events are any indication, as in the domestic controversies that have off-and-on gripped Najib’s government, Anwar is not likely to cede much ground on the international stage either.

Anwar’s international reputation and credibility, particularly in the West, were cemented during his days as finance minister much of the 1990s, which culminated in his falling-out with the former Prime Minister Mahathir Mohamad. Back then he quickly came to embody the image – at least among those sympathetic to the so-called Washington consensus - of a moderate with a learned appreciation of the intricacies of maneuvering through an international financial crisis.

Between his release from prison in 2004 and winning his current parliamentary seat, Anwar Ibrahim reaffirmed his ties and visibility abroad. Perhaps this was to be expected given he was forbidden by Malaysian law from immediately jumping back into the political fray and running for office. The period coincided with lecturing stints at Georgetown and Johns Hopkins Universities in the US and Oxford University in the UK, not to mention that they took him to familiar locales (especially Washington, D.C.) and among some friendly circles.

It was also during this period that Najib’s star within Umno was on the ascendency. By the time the 2008 general election rolled around in March, then-prime minister Abdullah Ahmad Badawi was already mired in a serious internal political struggle within Umno and the political assault from Mahathir did not help Badawi’s attempts to move Umno and the country beyond the politically crippling grip of the former premier, who rarely passed up an opportunity to indulge in Washington-bashing; or for that matter, being his prickly self toward the West. To be sure, most of this sentiment was tailor-made for domestic political consumption.

As the handwriting on the wall for Abdullah Badawi became apparent following the Barisan’s meek performance in the 2008 general election, Najib, the prime minister-in-waiting, also found himself in the dubious position of being propped up by his political mentor and anti-Washington demagogue, Mahathir.

Already having been embroiled – and internationally tarnished – by allegations over the gruesome murder of Mongolian translator Altantuya Shaaribuu in 2006 by two of his bodyguards and by allegations of corruption over the purchase of French submarines, Najib’s close political links to Mahathir may have helped consolidate his political stake within Umno, but it would be safe to say it hardly helped to make Najib a sweetheart in either Washington or other western capitals.

In an effort to improve his overseas image and to seek to blunt Anwar’s, Najib even before he took office had the government contract with the international public relations powerhouse Apco at a cost of RM28 million That has backfired to some extent through Anwar’s and the opposition’s allegations that Apco also does work for the Israeli government.

It is against this backdrop that there was much hullaballoo made in the state-controlled media of Najib’s ‘Kodak moment’ during his meeting with President Barack Obama during the nuclear security summit in Washington, DC in April. While it symbolized Najib’s stepping out on his own on the international stage – and out of the shadow of his anti-western political mentor – it arguably enabled the prime minster to appear, after all, less a novice, at least vis-à-vis Anwar, especially in Washington.

Piggy-backing on this encounter with Obama, the prime minister’s wife, Rosmah Mansor, too was the beneficiary of some apparent international notoriety as she was honored with the International Peace and Harmony Award. Given some of the critical coverage that the prime minister’s wife had attracted in the alternative media, such international exposure for the couple – at least on the home front – helped provide a favorable narrative internationally.

For his part Anwar, having become embroiled in another sodomy trial, has been diligent about helping to keep some of the international community’s attention on Najib’s government by stressing the issue of political persecution in Malaysia. This is evident in how his legal team has sought to portray the sodomy case.

Beyond this, Anwar has continued to cultivate his international links. Just as the hoopla from Najib’s trip to the United States was winding down, Anwar was to feature at the Oslo Freedom Forum in late April. More recently, he renewed old and enduring ties with associates in the United States during a visit centered around a presentation on Islam and democracy in Southeast Asia delivered at the Woodrow Wilson International Center in Washington, D.C.

Anwar will continue to rely on his international reputation and image as a credible democrat – and a moderate, internationally renowned Muslim figure to sustain his domestic political ambitions. It is, incidentally, also in this light that we can interpret Anwar’s recent ‘regret’, as reported in a Washington Post article, for invoking the reference of ‘Zionist aggression’ in his characterization of the flotilla incident off the coast of Gaza. Surely, Anwar must have realized that he had stepped just a bit too far and can ill afford to compromise his credentials in the international community as a moderate.

Just as Anwar sees the inherent value of his international goodwill both for himself and for the prospects for democratic reforms in Malaysia, Najib has also revealed his intentions by retreating from the anti-Washington rhetoric that was his political mentor’s signature and simultaneously repair his own international image, whilst hoping to lessen the overwhelming advantage and goodwill Anwar continues to enjoy in the West.




Asia Sentinel

Maika Holdings......the curse......

MAIKA Holdings Bhd's current state belies its euphoric start. Many, a lot of them rural folk, were swept away by the fancy promises of future profits by its promoters and the fact that their hard-earned monies, ploughed in to buy Maika shares, would turn them into stakeholders of the national economy.

For many working-class Indians, it was not solely the promise of wealth but the belief that this was the start of the walls of economic barriers being pulled down to raise the status of the community. Some called it a "certificate of pride". On hindsight, this would turn out to be highly naive.

But there were also many urban Indians who were smitten by the idea of investing for decent returns and scooped up Maika shares; some of them have sold their shares over the years as the realisation crept in that chances of reaping returns were thinning out.

Maika was set up in 1983 as the MIC's investment arm, to shore up the corporate equity of the Indian community from a paltry 1% to an ambitious 7%. It is the brainchild of long-serving MIC chief Datuk Seri S. Samy Vellu.

With that main agenda, the drum roll befitting a major festival began in 1984, with the intention to court thousands of Indians to subscribe for the restricted public issue of 50 million Maika shares at RM1 a piece, which was raised to 100 million shares due to the overwhelming response.

The picture of hopeful crowds which thronged the branches of United Asian Bank back then stands in start contrast to that of frustrated shareholders at highly-strung Maika AGMs caught up in fist fights and angry words under the hawk eye of hundreds of security personnel years later.

Many had pawned their jewellery and other valuable possessions and borrowed, undeterred by the then high interest rate regime, which resulted in a two-fold oversubscription for the shares.

One of them is management consultant S. Nadarajah, who was then 25 years old and employed as a clerk in a Chinese firm. He borrowed to buy 1,000 shares which, as a result of a four-for-one bonus issue, today has grown to 1,250 shares. Much to the chagrin of his mother, who was somewhat sceptical, his father too went ahead and borrowed to buy another 1,000 Maika shares.

"I was socially conscious. I didn't just invest for returns. I deeply believed that it would help the Indians who were under-performing in terms of job opportunities and economic development. I had hoped the company would flourish," says Nadarajah.

And it did for a bit. It was reported that in the first financial year, Maika made a pre-tax profit of RM2.17mil. Maika's first chairman Tan Sri G.K. Rama Iyer, the former secretary-general of the Primary Industries Ministry, was appointed in 1985. Dividends of between 3% and 8% were paid in 1985, 1986,1988, 1991 and from 1993 to 1995. There was also a bonus issue in 1996.

Sadly, it didn't take too long for sentimental expectations to match reality. As a business concern, Maika was not flourishing. In fact, it was anything but. The company was besieged by operational losses as a result of questionable ventures and when it did make operative profits, they were at best unimpressive. The seeds of discontent and upheaval was beginning to sow in the community.

The cracks started showing in 1987 and many attributed this to its overzealous expansion into a smorgasbord of businesses including commodities, petrol service station, cattle rearing, aquaculture, fruit farming, chopstick manufacturing and soft drinks.

According to news reports, the group suffered losses of RM532,025 in 1987, RM521,811 in 1988, RM3.09mil in 1989 and RM4.69mil in 1990.

At its peak, Maika had some 18 subsidiaries, most of which were inactive or loss making, with the exception of Oriental Capital Assurance Bhd. One of its memorable ventures include the acquisition of Anthonian bookstore, which further contributed to the losses.

It also made profits from the "sale of investments'' which usually involved government-allotted blue chip shares such as Telekom Malaysia Bhd, TV3 and Tenaga Nasional Bhd, proceeds of which were used to write off debts and losses.

Many opined that Maika should not have been so hasty to sell those shares as in current times, those shares could be worth a handsome sum.

In the mid-80s, it acquired 386ha of the Tumbuk oil palm estate for RM13mil from the National Land Finance Co-operative Society (NLFCS).

Of the countless many subsidiaries it had formed, only one appeared to be a prized asset - one of the earliest insurers in the country Oriental Capital Assurance Bhd (OCA, formerly known as United Oriental Assurance Sdn Bhd).

Following a directive from Bank Negara that all insurance companies need to shore up their paid-up capital to RM100mil by end-June 2001, OCA proposed a rights and bonus issue. Maika's share of the rights issue totalling 31.5 million shares at RM1 each was part-financed by a syariah facility of RM28.3mil from the former Southern Bank Bhd (now part of CIMB Bank Bhd) at an interest rate of between 8.5% and 9% per annum. The loan was taken on a
short-term basis with the understanding that the insurance company would be listed on Bursa Malaysia. That, however, had failed to materialise. As at Aug 15, 2007, the outstanding loan obligations of Maika to CIMB and Danaharta Managers Sdn Bhd totalled some RM55.6mil including interest. Those debts remain outstanding till today.

By 2000, creditors were knocking on its doors demanding repayments. To fully settle a revolving credit facility of RM23mil which was demanded, the company disposed of 755 acres for RM38mil cash in 2005. According to Maika's annual report 2006, some RM10mil of the proceeds were also used to part-settle the syariah facility which expired at end-September 2006; the principal amount outstanding was RM18.3mil which matured in September 2007.


But that was not all. In 2000, it was stated in the company's 2006 annual report that Danaharta Managers demanded full repayment of a debt of RM23mil which was classified as non-performing and which ballooned to RM34mil as at 2006 due to a default in guarantee obligations and interest accrued. A small portion of that debt has been settled through foreclosure of assets. Maika has managed to stave them off on the premise that it would restructure itself by selling its Tumbuk estate, investment assets and through a cash call via a rights issue. In the event the financial restructuring fails to materialise, the company and its affected subsidiaries may be required to cease being in business, it had said in the annual report. However, it added that its stake in OCA, if disposed, would be able to fully satisfy the debts and raise additional funds for suitable business opportunities.

Till today, these issues remain outstanding

Looking beyond Maika.....

THE curtains are being raised on the crumbling house of cards in the most protracted prickly issue among the Malaysian Indian community. For over two decades, Maika Holdings Bhd, MIC's investment arm, initially touted as the "all Indian dream", has been riddled with deep distrust, intense suspicion and weakened by scandal.

So, it was not surprising that when Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam first revealed his plans to takeover Maika in a rushed press conference in late April, instead of stemming the voracious speculation which was his original intent, he had re-ignited the long pent-up suspicion.

Questions aplenty flowed on steady stream: Is this rescue a political play?

Is it a brokered settlement with the MIC leadership? How many layers of agenda are there in this exercise?

What's in it for Gnanalingam? Are the poor Indians, who have long endured this debacle, getting a raw deal?

It didn't help at all that the takeover plan was revealed by politicians just days before the Hulu Selangor by-election, which was perceived by many as an attempt to woo voters.

Truth is, as CIMB Group chief executive Datuk Seri Nazir Razak put it: "It's a very simple deal." (CIMB is adviser and financier of the special purpose vehicle G Team Resources & Holding Sdn Bhd formed to undertake the exercise. G Team is equally owned by Gnanalingam and Datuk S.Kunasingam).


At a press conference to announce the conditional takeover offer on Wednesday, Nazir started out his speech this way. "I'm intrigued that when I announce billion dollar deals, the room (venue of the press briefing) is only half full but today, it's very full. There must be a lot of interest." An understatement, indeed.

If you strip out the past, the highly-strung sentiments and the politics from the deal, Gnanalingam's plan - to wrest control of Maika, pay back shareholders their original investments, manage the debts, flog off its two valuable assets (an agricultural land in Sepang and a 74.1% stake in Oriental Capital Assurance Bhd), the excess proceeds of which will be channelled into a fund for the community and finally close the chapter on the scandal-ridden company - is a solution which gets most people thinking - "Why couldn't this have been done much earlier?".

Unfazed by critics and quite confident he will be able to garner over 50% of Maika shares, a condition for the offer, Gnanalingam, who is also co-chairman of the Cabinet sub-committee on Indian affairs, remarks: "A
thousand opinions are not better than one action plan."

"If we can't solve this first problem, it's no use being on the committee.
That's why I'm doing this." A simple deal, indeed G Team has proposed to acquire all 125 million shares in Maika at 80 sen per share or RM100mil cash (the 25 million shares arose from a four-for-one bonus issue in 1996). The offer is conditional upon G Team receiving more than 50% of the voting shares of Maika. Once the offer becomes unconditional, it will also trigger a general offer for OCA shares.

On May 14, 2010, in what is the first sign that the deal has moved one step ard, Maika's board of directors confirmed that they had received a takeover offer, further stating that they were not seeking an alternative person to make a takeover offer of the company's shares other than G Team.

Maika shareholders are expected to receive the offer document within 21 days and the offer will remain open for at least 21 days with an option to further extend.

G Team has been given a time-frame of one year by the central bank to dispose of its stake in OCA. As for the encumbered land, once its title and valuation have been verified, a committee would be set up to determine the best way to realise the value of the land.

Should the exercise result in a financial gain, the monies will be donated to an established charity for the benefit of the Malaysian Indian community while any loss will be borne by G Team. G Team does not plan to continue the operations of Maika.

"It is our intention to close the chapter (of Maika)," said Gnanalingam.

And this - "There's no political involvement in this exercise. I feel Indians should resolve the issues themselves and as quickly as possible."

The big question - is it a fair offer?


The offer price has drawn mixed response.


"He (Gnanalingam) is a businessman. He is only talking of giving shareholders their original investment value. If he's willing to pay RM1 for 125 million shares, then it's reasonable. What happens to those who bought the bonus shares at RM1? After waiting for 26 years, not many people are going to be happy with the offer," says Datuk S. Subramaniam, president of Nesa Cooperative. (Nesa Cooperative filed and won a court order to stop the sale of OCA back in 2007)).

Gnanalingam, a former tobacco and advertising executive and now port owner since 1996, was ranked the 13th wealthiest man in the country with a net worth of some RM800mil by the widely followed rich index by Forbes last year. With that in mind, there are many who ask "Why couldn't he pay more?"

Here's why.

Maika's latest net tangible asset stood at 23 sen per share; at the offer price of 80 sen per share, the offer translates to 3.5 times book. In addition, it has liabilities of some RM60mil. (Maika's 2006 accounts show that it has two debts - RM34mil owing to Danaharta Managers and RM18.3mil owing to CIMB, which total RM52mil.)

In fact, according to a source, one of Maika's creditors, Danaharta Managers, had earlier agreed to take a haircut on the outstanding debt. In a letter to shareholders dated August 2007, Maika's then chairman Tan Sri Abdul Rashid Manaff alluded to that. He said the board was hopeful of obtaining a substantial waiver of the accumulated interest of nearly RM20mil owing to Danaharta Managers. If this is still the case, then the debts ought to be lower than estimates.

But sources close to the offeror reveal that since news of a potential takeover has surfaced, the creditors have been less amenable to providing the haircut.

Back to the valuation. The Tumbuk Estate in Sepang is worth RM10mil while based on its latest available book value as at 2008, OCA is said to have a net tangible asset of RM102mil.

Based on 1.5 times book value, Maika's stake in OCA is worth some RM113.4mil. If you total the value of OCA with that of the land and minus the debt, it comes up to some RM63mil, as opposed to the total purchase price of RM100mil.

It is believed that in FY2009, OCA returned to the black after a three-year loss streak. A company source said the insurer's latest NTA stood at RM120mil as at end-December 2009. Based on those figures, Maika's stake in OCA at 1.5 times book comes up to RM133.4mil which, after including the land and debt, totals RM83.4mil.

"However you skin it, it's going to be pretty tough to get it to RM100mil," says Nazir, adding that it is an offer at fair value based on what is available at this point. "It's fairly offered to everyone and we hope majority will accept."

But there may be one stumbling block to the sale of OCA which has been there since 2007 - Nesa Cooperative's court order to freeze the sale of OCA.

"I have repeatedly said that at any time when an offer is made and the price is reasonable, we will apply to lift the injunction. We know there were offers in the past which valued the company at RM130mil and RM149mil. So, as far as the insurance company is concerned, these are the parameters. If the price is reasonable, there's no problem," says Subramaniam, who owns some 8,000-10,000 shares/


Disgruntled shareholders


Many shareholders appear only too relieved that the latest takeover offerwould finally mean closure to the painful Maika saga, especially so for those who have written off the possibility of ever getting their monies
back.

In fact, along the years, many shareholders were said to have sold their shares at 50-80 sen to interested parties. "These people were poor and desperate to raise any cash they could," says an observer.

And there are others who believe they should hold out for a better price.

One of them is S. Nadarajah, a management consultant.

"We welcome the move. But what's important is the price, which I feel is ridiculously low. It looks more like foreclosure value than real market value. OCA has considerable value that can be unlocked. It's a much sought after business," he says.

That may be perception more than reality. Sources close to the insurer says a lot need to be done to bolster OCA's waning status. "Yes, it (OCA) is a valuable asset but it is nowhere near to what some Maika shareholders think.

The person who buys the company needs to pump in at least RM20mil to revamp the operations, recruit people and get things back on strong footing. A lot need to be done. Some are saying it ought to be sold for RM200mil. I think that's a pipedream," says the source.

"Coming in and out for Gnanalingam makes sense as he can make almost dollar for dollar return on what he paid for Maika. The downside could be limited unless of course, they take too long to flip it. The longer they take, the less value they will get," adds the source.

Ultimately, whether the offer price is fair would be judged by how much the asset is finally disposed of, which has been promised will be an open and transparent process.

"There's clearly no intention to short-change anyone here. We have to start from somewhere. The key thing is to look forward," says Nazir.


Moving on


Gnanalingam is clearly anxious to separate his takeover plan from the past. Why not? He's not responsible for the controversies that have long dogged the group. "I don't want to go into what happened in the past 26 years. It's irrelevant," said Gnanalingam.

Unfortunately, that may be easier for them to do than the tens of thousands of Maika shareholders, who over the years have had to suffer the crushing realisation that their investments in Maika have painfully diminished. That could mean another thing - that while the cleanup may not take too long, the repair could take much longer.

"Maika is a commercial entity that has been bogged down by political dogma.

That's the main reason for its downfall," says a corporate observer.

Back in the 80s, RM100mil in the coffers was an eye-popping load of money. "If the company had invested most of its money in equities then and sat pretty up until now, it would have billions in its coffers today," says the observer. The colossal loss of opportunity, indeed, is hard to stomach.

"Political parties need to have their own ways of doing things in the business world. But they can't run away from the simple fact that just being granted access, is no guarantee to making returns. It does not mean, you
don't have to manage it. Execution is still the issue whether you are the investment arm of Umno, MCA or MIC," says the astute observer.

There are many issues about the company that are puzzling. Maika has not conducted an annual general meeting for the past three years. The last annual accounts received by members was for financial year 2006. It currently only has a two-member board - Datuk C. Vijaya Kumar, chairman and Vell Paari, the CEO. Paari is also the son of Datuk Seri S. Samy Vellu, MIC president and the architect of Maika.

Given that there are adequate safeguards and checks and balances in the law,it is deeply distressing that the regulators have not appeared to act in a meaningful way.

At this point, what we do know for sure is that Maika, once trumpeted as the Indian community's answer to uplifting their flagging socio-economic status, is a dismal flop.But what we do not really know is - how exactly did it reach this point?

Once the chapter is closed, will we ever?