1-5-2012 The notorious MAS – AirAsia share swap was unwound by PM YAB Datuk Seri Najib, HERE.
1-5-2012 AJ responded with an email wherein he sounded very sad. In fact, he was in grief as though he had lost a loved one in his family. Amongst other things he said as follows:
“The original good intentions of the Share Swap exercise did not materialise and instead became a distraction and hindrance to the bigger picture and most important task at hand, which is to turnaround our loss-making Company.
Given the huge efforts channelled by all quarters to the Share Swap, it is sad that Malaysia Airlines has lost valuable time and wasted so much energy when all this should have been to focus on the recovery of our business.
The Business Plan presented at the end of 2011 covers a set of Game-changers. This includes collaborating with AirAsia and AirAsia X. So whilst the Share Swap has been unwound, we will continue to pursue collaborations with AirAsia and AirAsia X to seek synergies that we hope will translate into cost savings and better efficiency.
Malaysia Airlines has taken a step forward in the collaborations and has signed a Supplemental Collaboration Agreement and 2 Memoranda of Understanding (MoU) with AirAsia and AirAsia X in joint procurement and aircraft component maintenance support and repair services. The MoUs include the possibility of setting up joint-venture companies to see through some of these collaborations. We are serious about getting these collaborations right and making the synergies work for us. Malaysia Airlines must support these efforts.“
For AJ’s full statement please read HERE.
May 2012 Dr Hugh Dunleavy was promoted to be the Director for Commercial.
7-5-2012 Despite the notorious share swap had been unwound, Tan Sri Tony Fernandes and Datuk Kamaruddin Meranun were still accorded with benefits of free 1st class flight to London by MAS. Read HERE.
21-5-2012 En Mohamad Rashdan Yusof aka Danny (the whiz kid of Khazasnah and one of the architects of the notorious share swap) resigned as the Deputy Group CEO of MAS, in HERE.
12-6-2012 AJ sent out an email at 6:22 pm to express his grief over the resignation of his co-pilot, En Mohamed Rashdan Yusof (the whiz kid of Khazanah) where AJ quoted Tan Sri Md Nor said “I regret that in past months, Danny has been most undeservedly and unfairly vilified and maligned in the blogosphere.“
AJ said that “As the Group CEO, it has been a pleasure to work with Danny. I will miss him greatly. I fondly remember the many days when we were burning the midnight oil together, executing the Business Plan initiatives, whilst having to ensure operational continuity. He was instrumental in our Business Plan, and its execution which is now showing positive operational results. He helped me to identify our new talents in the senior management team and assisted in their recruitment too.
However, that email at 6:22 pm was retracted by another email at 8:30 pm on the same night barely two hours after the first email with a few additional points to praise Rashdan to a majestic height and they were as follows:
“Contrary to such blog reports, Danny has displayed an exemplary work ethic and dedication during his tenure in MAS, and has been deeply committed to the turnaround of MAS.
The Board also expresses concern over the rampant leakage of company confidential information that results in disinformation in the blogosphere.The Board endorses Danny’s integrity, honesty and sincerity and considers his departure to be a genuine loss to the company.
At today’s meeting, the Board expressed serious concern over the rampant leakage of Company confidential information. I have instructed a major review of all information security protocols. We need to develop a staff culture that will ensure that the Company’s turnaround efforts are not undermined.” Read HERE.
Fine of RM10 million by MyCC due to the MAS-AirAsia
The MyCC has found that both airlines have infringed Section 4 (2) (b) of the Competition Act 2010 (‘the Act’) by entering into an agreement that has as its object the sharing of markets in the air transport services sector within Malaysia provided by both airlines.
“Market sharing is considered a serious infringement under the Act as it is deemed to have the object of significantly preventing, restricting, or distorting competition in any market for goods and services,” said Tan Sri Dato’ Seri Siti Norma Yaakob, Chairman of the MyCC. “When businesses agree to share markets, they are agreeing to stop competing at the expense of the consumers.”, HERE.
Whilst we support the decision of MyCC in the light of the above facts, it will be morally wrong that the staffs in AirAsia and MAS had to suffer because of the fine.
The MAS-AirAsia share swap was shove down the throats of MAS and AirAsia by those who signed it.
In view of the facts in Part 1, 2 and 3 of this topic, the Government must seek the advice from AG Chambers to institute legal actions against Tan Sri Azman Mokhtar, Tan Sri Tony Fernandes, Datuk Kamarudin Meranun, En Mohamed Rashdan Yusof aka Danny (the Khazanah’s whiz kid) and Tan Sri Md Nor Yusof PERSONALLY because they knowingly shoved the notorious share swap down the throats of MAS and AirAsia.
AJ had to responsible for all the decisions after his appointment as Group CEO of MAS after 19-9-2011.
Actions should also be taken against the directors appointed immediately after the notorious share swap because they could not rely on their ignorance as they will be deemed to have approved of all the decisions made that were adverse to MAS. The directors responsible for endorsing the MAS-AirAsia share swap were as follows:
- Tan Sri Mohamad Azman Yahya of SCOMI fame who is the longest serving director of MAS. The other directors had to resign after the share swap but not him. He became very powerful after the said share swap. He was also appointed to the Board of AirAsia. Tan Sri Mohamad Azman Yahya did not seek re-election in MAS AGM in June 2012
- Datuk Krishnan Tan Boon Seng of IJM
- Datuk Rohana of ASTRO, who has resigned
- Datuk Lau, who is also the director in AXIATA, the indepenmdent director
- Tan Sri Wan Azmi Wan Hamzah, who resigned during the first AGM of MAS in June 2012.
This was a clear case of “Harapkan pagar, pagar makan padi”. They must also be made personally responsible because they knew or ought to have known of the ulterior motive of the share swap.
Tan Sri Mohamad Azmam Yahya must be singled because he was the only the longest serving director of MAS at the moment. He was there before the share swap. The other directors have all resigned and he was handpicked by Khaznah and reappointed on the Board of MAS and AirAsia as the nominee of Khazanah.
AJ and Rashdan must also be held personally liable for the fine because they have jointly made decisions knwoingly or ought to have known that their decisions were deterimental to the interest of MAS.
AJ and Rashdan cannot plead ignorance because MAS has an in house legal expert by the name of Dr Wafi Hazrin, who happened to be an expert on Comepetition Law. It was also a fact that MAS appointed an international legal consultant Bain & Co to advise on compliance of Competition Law, in HERE.
Many would call for the same actions to be taken against Dato’ Seri Nazir Razak of CIMB who was the adviser of this notorious share swap. We can understand if actions is not taken against him because he is just a banker and he was carrying out the duties of his profession as a banker. If he did not it, other bankers would have jumped on the band wagon to do it because the fees was irresistible. After this, yours truly hopes that Datuk Nazir Razak will be mindful that he is the brother of the current PM and should avoid getting involved in such deal regardless of the financial returns. If he persist then the future is not hard to be determined.
Advisory Panel of the share swap: Chairman Tun Abdullah Badawi
Some readers may ask: Should the Adviser of MAS, Tun Abdullah Badawi, be also held responsible for the notorious share swap? He was appointed as Adviser to MAS in late 2010. He was handpicked to be the chairman of the special Advisory Panel after the notorious MAS-AirAsia share swap to ensure that the share swap was implemented in the public interests.
On 10-8-2011 MAS, AirAsia and Khazanah joint statement:
“The collaboration agreement will come into effect immediately upon its execution, and shall remain in effect for a period of five years from the date of the agreement with an option for a further five-year renewal,” it added.
An Advisory Panel, chaired by former Prime Minister Tun Abdullah Ahmad Badawi, had also been set up to ensure that all parties involved in the CCF, would operate in the interests of the public and reflects the aspirations of all consumers.”, HERE.
It would be extremely difficult to ascertain whether Tun Abdullah was aware of the mechanics of the notorious share swap or there was any meeting held by this special Advisory Panel to examine the motives of the notorious share swap because his existence in MAS was not felt even though he is still the current Adviser of MAS.