This article first appeared in The Edge Financial Daily, on February 26, 2016.

KUALA LUMPUR: A police report has been lodged against a CIMB Bank branch for allegedly allowing withdrawals from the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) account without the signature of its treasurer.

Selangor Indian Chambers of Commerce and Industry president P Muguntha, who made the report at the Dang Wangi police station two weeks ago, said the treasurer’s signature on all cheques was mandatory.

He said the MAICCI constitution stated that all withdrawals must have the signature of the treasurer.

Muguntha said other signatories could be either the president or the secretary-general.

“However, we discovered that at least RM2.3 million had been withdrawn between 2013 and last year, and the signatories to the cheques were the president and secretary-general,” he told The Malaysian Insider.

MAICCI treasurer during the said period was Datuk R Rajasegaran, who is now the deputy president.

Businessman Tan Sri Kenneth Eswaran was president, while the secretary-general was Datuk M Davendran, a former state assemblyman in Pahang.

Eswaran remains president after his re-election last year.

Muguntha said he also filed a  complaint yesterday with Bank Negara Malaysia against the bank for the alleged negligence.

“I am filing the complaint because the Selangor Indian business guild is a key stakeholder in MAICCI,” he said.

Last October, Muguntha also accused Eswaran of misappropriating about RM2.3 million, part of which was a government grant disbursed to the guild in 2013 and 2014. 

Muguntha, who is now the MAICCI’s assistant secretary-general, lodged a police report at the Sentul police headquarters after discovering all cheques were signed by Eswaran and Davendran.

He said so far police have only recorded his statement.

Eswaran when contacted at the time said Muguntha’s allegations were baseless and unfounded, made by “an unproductive fellow”. — The Malaysian Insider