IPOH: The proposed RM300mil annual fund aimed at improving the Indian community will not be handled by the MIC, its president Datuk Seri S. Samy Vellu said.

Hitting out at critics that the proposal was another scam by the MIC to make money out of the Indian community, Samy Vellu said:

“Not a single sen of the RM300mil yearly allocation sought to raise the equity of Indians will pass through the MIC.”The party, he said, would have no hand in the decision-making, selection process or the disbursement of funds.

“The money is to be given out in the form of loans by financial institutions as well as development programmes and support schemes by government agencies,” he told reporters Monday before opening the Perak MIC Convention here.

As the ones who initiated the proposal, Samy Vellu said the MIC, through its Social Rehabilitation Foundation, could act as part of a monitoring body.

He detailed that of the total yearly amount being sought from the Government under the Ninth Malaysia Plan, RM100mil would be disbursed in loans or grants to the poor for the purpose of trust fund investments.

“The funds are to be handled by Permodalan Nasional Bhd or any others set by the Government,” he explained.

He said RM50mil would go towards loans to help small and medium industries or enterprises, RM30mil in micro-credit loans for 2,000 participants, and RM10mil to agro-based businesses.

“Under the Tamil schools development programme, RM50mil will be used to build new schools, and RM15mil for 100 new pre-schools and RM30mil to create hostel facilities at 50 schools on a yearly basis,” he said.

Another RM15mil would be used to help displaced poor families and single mothers under a welfare support scheme, he added.

Noting that the proposal had already been submitted to Deputy Prime Minister Datuk Seri Najib Tun Razak, Second Finance Minister Tan Sri Nor Mohamed Yakcop and Minister in the Prime Minister’s Department in-charge-of the Economic Planning Unit Senator Datuk Amirsham Abdul Aziz, he said the MIC would later be meeting the Prime Minister on the proposed fund next week.

“Hopefully, Datuk Seri Abdullah Ahmad Badawi will make a favourable announcement when he opens the MIC national convention in July,” he added.