Penang PKR Youth’s A Kumaresan said more than RM100 million was raised from almost 66,400 shareholders, a majority of whom were estate workers and those from the low-income group.
These groups, he claimed, pawned their jewellery and withdrew their savings just so they could invest in Maika.
“However Maika did not perform as expected. Many shareholders didn’t get their returns and lost their money.
“There are investors who have become bankrupt as they were unable to service their loans.
“We urge the government to set up an RCI to investigate the cause of the losses,” he said in a short statement.
Maika Holdings was established in 1982 by the then MIC President S Samy Vellu to enable Malaysian Indians to participate in the country’s economic growth, but it failed to produce good returns.
In 2000, Maika was taken over by tycoon G Gnanalingam’s G Team Resources for RM106 million to help resolve issues and pay off shareholders.