Ramasamy’s MACC probe over procurement of golden chariot, says source

Ramasamy’s MACC probe over procurement of golden chariot, says source

A MACC source says the Penang Hindu Endowments Board allegedly overpaid for the chariot under the former chairman's watch.

Former Penang deputy chief minister P Ramasamy claimed his political opponents are orchestrating the probe to tarnish his reputation.
GEORGE TOWN:
Former Penang deputy chief minister P Ramasamy is being investigated after a complaint about alleged corrupt practices in the procurement by the Penang Hindu Endowments Board (PHEB) of a golden chariot for Thaipusam some five years ago, says a source.

Ramasamy, who was the PHEB chairman from 2010 to 2023, was yesterday barred from leaving the country by immigration officers at the Penang International Airport after being informed that he had been blacklisted due to a Malaysian Anti-Corruption Commission (MACC) “directive”.

A MACC source told FMT the anti-graft agency had received a complaint several months ago alleging that the chariot was not pure gold as claimed. The source also said MACC had received a complaint about purported irregularities involving PHEB, which owns the chariot.

The source, who is close to the investigation, said it was “very normal” for a travel ban to be placed on individuals being probed. The MACC source said the board’s former executive director and CEO M Ramachandran was also under investigation.

“We received a complaint that PHEB, during Ramasamy and Ramachandran’s time, overpaid for the chariot when they were supplied with very low quality material (which was) not up to specifications,” said the source.

“Since this is a matter of public interest, MACC has decided to start investigating the two.”

The source added that the chemistry department had been roped in to check if the chariot had the same amount of gold as claimed.

In August, Bernama reported that current PHEB chairman RSN Rayer had submitted PHEB’s findings of an internal forensic audit to MACC. Rayer claimed that the audit had uncovered several red flags, but did not elaborate on them.

It is a gold-plated chariot, says Ramasamy

Ramasamy yesterday told FMT that he categorically denied such claims, saying the auditor-general had vetted PHEB’s accounts during his tenure.

He said the chariot, which was bought in 2019 and the second of its kind, was gold-plated rather than solid gold.

“To say it was made of substandard material is misleading. It was gold-plated, which naturally involves the use of other metals,” he said.

The cost of the chariot was approximately RM800,000, according to Ramasamy, who said the project was awarded through an open tender involving three contractors – two from India and one local.

Ramasamy said after an evaluation by PHEB’s board, the contract was ultimately given to a company from India which requested payment in cash.

He said about RM400,000 in cash was paid to the contractor, with the remainder going towards other project expenses such as the shipping cost of materials from India.

He said all payments were approved by the PHEB board and reported to the relevant authorities, especially the auditor-general, since the board was under federal purview.

“We followed all procedures. PHEB is audited yearly by the auditor-general’s office, and our reports are presented to Parliament, not the state assembly,” he said.

‘MACC relying on incomplete documents’

Ramasamy said MACC was relying on incomplete documents and had failed to understand the complexities of PHEB’s overlapping state and federal jurisdictions.

The Urimai president also claimed that his political opponents were orchestrating the probe to tarnish his reputation.

“These allegations are baseless. If there’s evidence of a money trail leading to my bank account, they should prove it. Let them investigate thoroughly.

“I believe this is political persecution. I’ve been vocal in the opposition, and the travel ban is part of a coordinated effort to discredit me,” he said.

Ramasamy, who voluntarily headed to the MACC office at Northam Road yesterday and had his statement taken, said he had seen Ramachandran in MACC lock-up garb.

“I am not sure where they are taking him,” he added.

FMT has contacted MACC on Ramachandran’s whereabouts and tried reaching out to him for comment.

When contacted, MACC chief commissioner Azam Baki confirmed that both Ramasamy and Ramachandran were under investigation.

He provided no further details.

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