MIC Treasurer-General steps down over fraud case

MIC first term Treasurer-General Datuk R. Ramanan stepped down from his position with immediate effect pending a court case.

Ramanan said he has filed an appeal today against a High Court decision, which on Thursday, ordered him to return RM5.5 million to psychiatrist Tan Sri Dr M. Mahadevan.

Ramanan had fraudulently received the sum from the defence ministry when "assisting" the psychiatrist to recover the payment, four years ago.

"In view of the High Court decision and in the interest of MIC and my president Datuk Seri G. Palanivel who I love very much, I am stepping down as the Treasurer-General of MIC until I clear my name in court.

"I do not want this High Court decision to be exploited by anyone. It has been exploited enough.

"This is a civil matter between two individuals. It is not a criminal case," he said at a press conference at the MIC headquarters today.

When asked why he decided to step down as it was only a civil case and some other MIC leaders had previously been involved in similar cases, Ramanan said it is an honorable thing to do because he loves the party, Barisan Nasional (BN) and Palanivel.

Ramanan said he has not informed Palanivel of his decision before announcing it and he hoped that the latter would accept it.

"This decision is purely my own. It is for the betterment of the party," he said.

Ramanan assured that despite stepping down, he will continue to serve the Indian community and the public.

Ramanan added that he is willing to 'park' the RM5.5 million into both the defendant and the plaintiff solicitors' accounts.

"It is not an issue of money. I am appealing the case but I will pay the money," he said.

On Thursday, Judicial Commissioner Lee Heng Cheong, in his decision, said he agreed with Dr Mahadevan's counsel that Ramanan had fraudulently misrepresented himself to the plaintiff, resulting in him transferring the money into the defendant's personal account on May 19, 2010.

Ramanan was ordered to pay the money within 14 days but following his application, the court allowed an interim stay of execution, pending an application next Monday.