Reveal details of Danaharta-Tajudin settlement, say BN and PR MPs

KUALA LUMPUR, Feb 15 — Politicians want details of the “out-of-court settlement” between national asset management firm Pengurusan Danaharta Bhd (Danaharta) and Tan Sri Tajudin Ramli made public.

They said the public had a right to know how much of public funds were recovered in the settlement which was made confidential by the Court of Appeal yesterday.

Barisan Nasional (BN) and Pakatan Rakyat (PR) federal lawmakers told The Malaysian Insider that the company set up to handle toxic assets during the 1997 Asian financial crisis must reveal if it managed to recover a substantial amount of the RM589 million owed by Tajudin.

“The public has a right to know as it involved a state-owned company, whether or not it is Tajudin or anyone else. We should know how much was recovered, any interest rate to show how well Danaharta did,” Deputy Education Minister Datuk Wee Ka Siong said.

The company’s page on the Bank Negara website says it has dealt with 2,902 non-performing loans (NPL) worth over RM50 billion and recovered 58 per cent of the amount as of 2005, surpassing “the typical 20 – 50 per cent range experienced by similar agencies in Asia.”

“Without transparency, this is like a personal bailout fund for certain individuals. The public is justified in wanting to know if it was a bailout or a settlement which was good business,” said Selangor PAS deputy chief Khalid Samad, who is also Shah Alam MP.

Danaharta and Tajudin ended their drawn out legal battle when they settled out of court yesterday after Putrajaya had directed in August all GLCs to drop civil suits against the former chairman of the national carrier and protégé of Tun Daim Zainuddin.

But the terms of the settlement remain confidential between the two parties despite a High Court decision in December 2009 for Tajudin to pay Danaharta RM589.14 million with two per cent interest per annum backdated to January 1, 2006.

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Reveal details of Danaharta-Tajudin settlement, say BN and PR MPs
February 15, 2012 – MI

Was Tajudin indemnified in Danaharta settlement?

KUALA LUMPUR, Feb 15 — DAP’s Tony Pua today demanded the Prime Minister explain the reasons behind the government’s out-of-court settlement with Tan Sri Tajuddin Ramli when it had already won the case in the High Court.

In a statement today, Pua asked why the government opted for a settlement instead of fighting it out at the Court of Appeal.

“Is the settlement a result of the government’s agreement with the Tajudin defence that he is completely indemnified by Tun Dr Mahathir Mohamad and Tun Daim Zainuddin from having to bear any responsibility for losses?” asked Pua (picture).

The DAP national publicity secretary said that if that was the reason, then Datuk Seri Najib Razak should immediately take action against both Dr Mahathir and Daim for not only “gross negligence” but having “wilfully” provided guarantees and indemnity to Tajuddin in the privatisation of Malaysian Airlines (MAS).

Tajudin’s out-of-court settlement with Pengurusan Danaharta Bhd (Danaharta) yesterday marked an end to the six-year dispute over millions of ringgit that the former Malaysia Airlines (MAS) chairman owed to the national asset management firm.

The settlement resulted from a directive issued by Putrajaya in August last year, telling all government-linked companies, including MAS, to drop their suits against Tajudin.

The settlement comes after a lengthy legal dispute following a High Court decision in December 2009 ordering the ex-MAS chief to pay the state asset management manager RM589.14 million plus two per cent interest per annum, backdated to January 1, 2006.

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Was Tajudin indemnified in Danaharta settlement, Pua asks Najib
February 15, 2012 – MI

The Invincible Super-Crony

This super-crony seems invincible. With 52 big guns pointed at him by very powerful adversaries he had deceived, he is still standing his ground and is not worried. One of the big guns is ready to fire a big cannonball worth more than RM500 million. He couldn’t care less. What superpowers can he possess which can protect him from such onslaught?

Well, this super-crony has revealed that he was actually acting under the instructions of the powerful Evil Doctor and obviously has the protection of the latter’s evil powers. This is supported by recent events where the Nonsensical Minister has instructed all the adversaries to lower their 52 big guns and use only one tiny water pistol provided by the Evil Empire which obviously would do no harm to the super-crony.

http://www.theedgemalaysia.com/highlights/200346-tajudin-ramlis-case-to-proceed.html

MAS probes graft claims in cargo unit, boss put on leave

KUALA LUMPUR, Dec 21 — Loss-making Malaysia Airlines (MAS) is investigating allegations of kickbacks in its cargo unit which has led to MAS Airlines Cargo (MASkargo) managing director Shahari Sulaiman to go on leave since early last month, sources said.

The Malaysian Insider understands that an internal investigation report has been sent to the MAS board although the unprofitable flag carrier has not lodged a police report over the issue.

“It is related to kickbacks in MASkargo and the board already has a report on the matter,” a source told The Malaysian Insider.

The source added new managing director Ahmad Jauhari Yahya and the top management have been going through the books for all divisions in the national carrier that has posted losses of some RM1.2 billion in the three quarters of the current financial year. MAS is not expected to make profits until 2013 despite a new business recovery plan.

“They are cleaning up the company. This is just the start,” he added.

However, it is not clear why MAS has not lodged a police report over the alleged kickbacks in MASkargo, which made a record pre-tax profit of RM142 million in 2010.

The Business Times had reported that Shahari has been away since early November 2011 after fresh allegations about problems in the cargo unit.

The new MAS board had begun looking into all aspects of the airline operations after a share swap between the national carrier and Asia’s biggest budget carrier, AirAsia in early August. It is understood that investigations started and a domestic inquiry was done but fresh allegations revived the probe.

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MAS probes graft claims in cargo unit, boss put on leave
December 21, 2011 – MI

The bailout of all Umnoputra bailouts

KUALA LUMPUR, Aug 13 — Lim Kit Siang today waded into the uproar surrounding the government’s controversial “bailout” plan for Tan Sri Tajuddin Ramli, demanding all government-linked companies (GLCs) to publicise their suits against the former Malaysia Airlines (MAS) chairman.

The DAP adviser pounded the Najib administration’s credibility to the ground, saying its intervention in Tajuddin’s multibillion ringgit suits was akin to “the bailout of all Umnoputra bailouts”.

“Public confidence has been greatly shaken by this intervention and the Malaysian public is entitled to the fullest information about all the civil suits, criminal reports (and anti-corruption investigations) which GLCs have made against Tajuddin if Malaysians are to be convinced that the Tajuddin intervention is not to become ‘The bailout of all Umnoputra bailouts’,” he said in a statement.

Referring to The Malaysian Insider’s report on the issue this morning, Lim (picture) pointed out that Datuk Seri Nazri Aziz’s statement that Putrajaya could bleed billions of ringgit because of Tajuddin’s counterclaim holds no water as the latter’s RM13 billion suit had already been rejected by the court.

A source close to several parties named in the lengthy series of suits and counter-suits involving Tajuddin had told The Malaysian Insider that the tycoon had not only lost his suit against national debt restructuring company Danaharta in 2009 but had also been ordered to pay RM589 million to the firm, its two subsidiaries and its four managing directors named as Datuk Azman Yahya, Datuk Abdul Hamidy Hafiz, Datuk Zukri Samat and Datuk Kris Azman Abdullah.

“Nazri has been accused of plucking from thin air the figure of RM13 billion against Danaharta as Tajuddin was the only one who owed money and Danaharta did not owe him anything,” said Lim.

The spotlight was cast on Tajuddin and the country’s ailing flag carrier after a letter penned by Nazri, a senior minister in Najib’s Cabinet, was obtained by The Malaysian Insider, revealing a directive from the administration urging all GLCs to drop their suits against the fallen tycoon.

Tajuddin is facing billions in legal claims against him, following accusations by MAS in 2002 that he had caused the carrier to suffer losses in excess of RM8 billion.

“It boggles the imagination as to how the withdrawal of all suits against Tajuddin could save the federal government billions when it has entered the national folklore that it is the Malaysian taxpayers who are the real victims of the Tajuddin-MAS financial bailout in 2000 to the tune of billions of ringgit — starting with the RM1.8 billion government buy-back of Tajuddin’s 29.09 per cent stake in MAS at RM8 per share representing a premium of RM4.32 or 117 per cent over the market price at RM3.68 per share when the deal was signed,” said Lim.

Lim asked Prime Minister Datuk Seri Najib Razak and Nazri if their attempt to drop all claims against Tajuddin meant that the latter was holding Putrajaya to ransom despite causing Malaysian taxpayers billions in financial losses.

“The onus is on Najib and Nazri to produce all relevant information to convince the long-suffering Malaysian taxpayers and public that it is not so,” he said.

After his letter surfaced, Nazri defended the administration’s move, saying it would not spell a debt bailout for Tajuddin but was merely a suggestion to the GLCs to work out an out-of-court settlement with the former MAS chairman.

When responding to the matter yesterday, Najib appeared to play down the issue, describing the intervention as an “off-site” solution.

…source
Kit Siang asks GLCs to reveal all claims against Tajuddin
By Clara Chooi
August 13, 2011 – Malaysian Insider

GLCs upset with Nazri for misleading explanation in Tajuddin Ramli saga

KUALA LUMPUR, Aug 13 — Several government-linked companies (GLCs) are perturbed by Datuk Seri Nazri Aziz’s attempts to justify Putrajaya’s intervention into ongoing lawsuits against Tan Sri Tajuddin Ramli and claimed the de facto law minister was giving out misleading information.

Nazri claimed an out-of-court settlement was the best solution. — File pic
A source close to several parties named in the lengthy series of suits and counter-suits involving Tajuddin pointed out that the former poster boy for Bumiputera entrepreneurship had lost his RM13 billion countersuit against national debt restructuring company Danaharta in 2009.

Among several documents obtained by The Malaysian Insider, a High Court judgment on December 7, 2009 showed trial judge Anatham Kasinather had awarded a total sum of RMRM589,143,205.57 to Danaharta, its two subsidiaries and its four managing directors named as Datuk Azman Yahya, Datuk Abdul Hamidy Hafiz, Datuk Zukri Samat and Datuk Kris Azman Abdullah.

The same trial judge had also dismissed Tajuddin’s RM13 billion countersuit against Danaharta and its agencies a month earlier on November 12, 2009.

The source related that the GLCs and their directors were stunned with disbelief at Nazri’s reasoning that an out-of-court settlement was the best solution to save the federal government billions of ringgit in legal claims.

“Nazri misled the public when he said ‘Our total claims by the companies against Tajuddin are only half a billion ringgit. That is why we said we should sit down and talk’. His claim that Tajuddin has the bargaining power and that the GLCs were disadvantaged is nonsense. The RM13 billion against Danaharta was also plucked from thin air,” the source told The Malaysian Insider yesterday on condition of anonymity.

“Tajuddin was the only one who owed money and Danaharta did not owe him anything,” the source said and quizzed: “So what is there to negotiate?”

Tajuddin allegedly caused MAS to suffer losses in excess of RM8 billion
Federal Court judge Tan Sri Md Raus Sharif has been put in charge of managing the ongoing slew suits involving a total 38 parties, including Danaharta and Malaysia Airlines (MAS), due to Tajuddin’s appeal after losing his counter-claim.

The cases have been dragging on for the past 1½ years and have yet to be fixed for hearing at the Court of Appeal.

Nazri had told The Malaysian Insider yesterday that he had written to GLCs earlier this month seeking for them to withdraw their suits, worth at least RM2 billion, to buy time for all concerned parties to reach a “win-win” agreement and put an end to the prolonged financial saga involving Tajuddin.

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GLCs upset with Nazri for misleading explanation in Tajuddin Ramli saga
By Debra Chong
August 13, 2011

Subterfuge to save “billionaire cronies”?

KUALA LUMPUR, Aug 13 — DAP MP Tony Pua called Datuk Seri Najib Razak “meek” today for trivialising his administration’s intervention in Tan Sri Tajuddin Ramli’s multibillion ringgit civil suits and accused the prime minister of using subterfuge to save “billionaire cronies”.

By shrugging off the move as a mere “off-site” solution, Pua said Najib was displaying a lack of political will to fight patronage, rent-seeking and cronyism — a pledge the prime minister himself had made when he came to power and announced his maiden New Economic Model (NEM) policy.

“In fact, the ‘off-site’ solution by Najib suggests some secret rendezvous between the two parties to thrash out a handshake deal by subterfuge,” he said in a statement.

Najib, he added, must rescind his administration’s order that all government-linked companies (GLCs) should withdraw their claims against Tajuddin and concentrate its efforts instead on making public its case against the former Malaysia Airlines (MAS) chairman.

The Petaling Jaya Utara MP was responding to Najib’s brief comment on the matter to the media yesterday when the latter appeared to play down the directive, saying it should not be misconstrued as an out-of-court settlement but merely an “off-site” solution to end the long drawn-out financial saga involving Tajuddin.

Tajuddin, a former protégé of Tun Daim Zainuddin, a close friend of former Prime Minister Tun Dr Mahathir Mohamad, is facing billions in lawsuits for allegedly causing MAS to suffer losses in excess of RM8 billion. Tajuddin was the executive chairman of the airline from 1994 to 2001.

But in a letter earlier this month by senior minister Datuk Seri Nazri Aziz, all GLCs, including MAS, Telekom Malaysia and Prokhas Sdn Bhd (formerly Danaharta), were ordered to withdraw their suits against Tajuddin, pending a possible out-of-court settlement.

Pua (picture) said this would be the “most outrageous bailout in Malaysian history” and reminded the administration that it had been forced to pay RM1.79 billion to acquire MAS shares belonging to Tajuddin’s corporate vehicle at RM8 per share despite its market price then being only RM3.62 per share.

“In addition, gross mismanagement by Tajuddin since 1994 has resulted in MAS suffering billions in losses and was laden with RM9.5 billion in debt,” he said, adding that despite asset bundling exercises later, the flag carrier still failed to completely recoup its losses till today.

Pua also questioned the administration’s move to replace all lawyers appointed by the GLCs to handle Tajuddin’s case to a known Umno counsel, saying this clearly unveiled an ultimate plan to set the tycoon free.

Pua also sniped at Nazri for accusing him yesterday of double standards, saying the law minister had used irrelevant examples to support his claim.

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Pua snipes at ‘meek’ Najib for protecting Tajuddin Ramli
By Clara Chooi
August 13, 2011

Law expert says Nazri’s ‘advice’ still an order

KUALA LUMPUR, Aug 12 — Datuk Seri Nazri Aziz cannot dodge responsibility for the Najib administration’s directive to GLCs to drop their suits against Tan Sri Tajuddin Ramli which critics have called a bailout for the former Malaysia Airlines (MAS) chairman, according to a constitutional expert.

Abdul Aziz Bari, professor of law at the International Islamic University, told The Malaysian Insider that in a constitutional Cabinet government, the entire Cabinet is responsible for all government actions.

“Of course, the finance minister is responsible for fiscal matters. But the entire Cabinet is tied in as well. This is the meaning of collective responsibility.

“In this context, whether or not Nazri gave advice or orders is not important. As a minister, Nazri is responsible to Parliament, meaning the public, on what happens to GLCs which belong to the public,” he said.

Nazri, minister in the Prime Minister’s Department, had told The Malaysian Insider yesterday that he had written to GLCs earlier this month to withdraw their suits, worth at least RM2 billion, to buy time for all concerned parties to reach a “win-win” agreement and put an end to the prolonged financial saga involving Tajuddin.

He said the matter was referred to Second Finance Minister Datuk Seri Husni Hanadzlah who then directed him to pen the letter, taking note that Tajuddin’s case was scheduled for case management in court yesterday.

Explain Tajuddin Ramli ‘bailout’ – TI-M

KUALA LUMPUR, Aug 11 — Transparency-International Malaysia (TI-M) president Datuk Paul Low questioned the Najib administration’s decision to settle all out-of-court suits between government-linked-companies (GLCs) and Tan Sri Tajuddin Ramli, saying today Putrajaya has a duty to protect the public’s interest.

He was responding to The Malaysian Insider’s report earlier today, citing de facto law minister Datuk Seri Nazri Aziz’s directive to all GLCs, including Danaharta and Malaysian Airlines (MAS), to drop all claims against Tun Dr Mahathir Mohamad’s poster boy for Bumiputera entrepreneurs as the Ministry of Finance (MOF) has agreed to settle the payment.

“When they say settle something, exactly what does it mean? Nobody knows how it’s to be settled or how much, on what basis and justification? Is the government paying on behalf of the GLCs? Is it a bailout? Who are parties involved?

“Who instructed Nazri? Was it the Finance Ministry, the Cabinet or the prime minister? We don’t know,” Low told The Malaysian Insider when contacted.

He reminded the ruling Barisan Nasional (BN) federal government that it was accountable for spending taxpayers’ money.

He said the government could not simply step into a legal dispute that involved a public-listed company, even if it had government ties; and added the government must show how the country and the public benefitted from such a decision.