Dr Wafi: MAS – AirAsia share swap contravened Competition Act?

Dr Wafi Nazrin Tan Sri Abdul Hamid: Have you advised Tan Sri Azman Mokhtar and the whiz kid, En Mohammed Rashdan Yusof, on the provisions of Competition Act 2010?

It was most worrying to see what had taken place in MAS after the inking of the secret MAS – AirAsia share swap on 9-8-2011.  Read HERE, HERE, HERE, HERE, HERE, HERE, HERE, HERE.

The glaring events after the said secret share swap were as follows:

  • the announcement of changing Firefly’s original objectives and plans under the old management of MAS headed by YM Tengku Azmil, who has since “resigned”; 

  • decision to cancel many Firefly full load flights during the recent Raya season;

  • decision to terminate profitable routes from JB to Kuching and Kota Kinabalu from 15-9-2011;

  • decision to terminate MAS profitable route to Bandung, Indonesia, from 4-10-2011;

  • decision to pay RM18 million to sponsor QPR home jersey for two years when MAS was supposed to be in deep financial state; and

  • others that have not been made known or exposed yet.

Read HERE, HERE, HERE & HERE. Yours truly has tabled Parliamentary Questions on the above events and the said secret share swap.  Yours truly is awaiting for answers in Parliament. Please read HERE.

On 4-10-2011 yours truly has also tabled a letter to Public Account Committee (PAC) in Parliament calling for an investigation into the said secret share swap. Yours truly has been informed that PAC will sit on 18-10-2011 to consider the matter.  The said letter of complaint to PAC will be posted in yours truly blog soon.

Yg Bhg Tan Sri Abdul Aziz Abdul Rhaman, the former MD of MAS when MAS was in good financial health, has commented on the said secret share swap. Read HERE.

Under the new organisational chart of MAS, the learned Dr Wafi Nazrin Tan Sri Abdul Hamid, is the new Head of Legal and Risk Department of MAS. He was a senior vice president for Corporate Services of Malaysia Airlines (MAS) under the old management. He is the son of Tan Sri Abdul Hamid bin Othman, former Minister in the Prime Minister Department in charge of Islamic Affairs.

Dr Wafi has a degree in law and maritime. He has also obtained a post-graduate qualification in European Union Competition Law from Kings College, London University. In recognising his international experience in competition law, he has been appointed by the government as advisor to the new Malaysian Competition Commission (MyCC). He is also a contributing author to the legal reference “ASEAN Competition Law” (2011). Read HERE for Dr Wafi’s qualifications

Dr Wafi is also the committee member of the Interim Competition Commission Unit.

Dr Wafi has been quoted to have said that the Competition Act 2010 would benefit everyone.  According to him, currently, a lot of prices of goods and services in Malaysia were fixed and once the Competition Act 2010 was fully implemented, price fixing was no longer allowed among businesses. He has also said that “The beauty of this Act is that the prohibitions under this Act apply to all commercial activities and government-linked companies.”

There were three provisions under the Competition Act 2010; prohibition against anti-competitive agreement which prohibited any horizontal or vertical agreement which had the object or effect of significantly preventing, restricting or distorting competition in Malaysia.

Prohibition against abuse of dominant position which prohibited abuses by enterprises occupying ‘dominant positions’ in the market they were operating in and the power to conduct market review which stated that the Competition Commission may conduct a review into any market in order to determine whether any feature or combination of features of the market prevented, restricted or distorted competition in the market.” From the said statements,  Dr Wafi  must be very learned and an expert in the law of competition. Please read HERE for the full press report.

Bearing in mind Dr Wafi’s above statements, appointment as the advisor to the MyCC and a member of the Interim Competition Commission Unit, Dr Wafi is one of the best, if not the best, person in Malaysia to advise us whether the said secret share swap has contravened the Competition Act 2011.

Dr Wafi should also make public whether:

  • prior to and/or during and/or after the negotiations of the secret share swap, he has duly advised Tan Sri Azman Mokhtar and En Mohammed Rashdan Yusof on the possibilities of MAS contravening the provisions of the said Competition Act;

  • he has advised the whizz kid, En Mohammed Rashdan Yusof, and his fellow directors of MAS, Datuk Azman Yahya of Scomi fame and Tan Sri Md Nor Md Yusof on the provisions of the Competition Act prior to all the decisions (i.e. cancellations of full load Firefly flights, termination of Firefly’s profitable routes from JB to Kuching and KK and termination of MAS routes to Bandung, Indonesia and etc) that were made before the appointment of the MAS new CEO, En Ahmad Jauhari Yahya.

The Malaysian Competition Commission is headed by YAA Tan Sri Siti Norma Yaakob, who has 43 years of exemplary judicial service. She was the first Malaysian lady Judge of the High Court, Court of Appeal and Federal Court. She retired in January 2007 as the Chief Judge of Malaya. She has been known to be a judge of high integrity.

The Domestic Trade, Co-operatives and Consumerism Minister, YB Datuk Seri Ismail Sabri Yaakob has been quoted to have said that “In line with its “People First, Performance Now” policy, the government yesterday launched a two-pronged action strategy to protect Malaysians against profiteering businesses. It not only enforced the long-awaited Price Control and Anti-Profiteering Act 2010 yesterday, it also set up a Malaysian Competition Commission (MyCC) under the Competition Commission Act 2010.” Read HERE for full report.

The MCC has decided to look into the said secret share swap. Read HERE.  Despite all the publicity hypes by En Mohammed Rashdan Yusof aka Danny and Tan Sri Tony Fernandes, the said secret share swap has yet to be cast in stone!

In the coming weeks, it will be interesting to hear the testimonies of the Malaysian corporate stars, Tan Sri Azman Mokhtar, En Mohd Rashdan Yusof aka Danny, Datuk Azman Yahya and others before the Public Account Committee. And, of course, they and Tan Sri Tony Fernandes, may have to also testify before the Malaysian Competition Commission too after 1-1-2012.

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24 comments

  1. Nice piece, YB except I do not have faith in this guy. He was brought in during Md nor Yusof time and part of team who scuppered MAS. He was also close to a highly controversial lawyer engaged by MAS, the flying buffet.

  2. And the rape of MAS continues with pressure to procure the services and products from various Tune Group of companies e.g. Tune Hotels, Tune communications. All this under the guise of synergistic cooperation.

    AK in turn will send their aircraft to MAS for maintenance (and then will take time to pay for it like airport tax).

    Poor MAS. From the frying pan inro the fire.

    note: just a minor edition to avoid unnecessary problems.

  3. I heard that in the last few weeks , Tony has been visiting MAS operations center several times and have been getting direct info from the staff on the inner workings of MAS.
    If that is not colluding, then i don’t know what is.

    Only recently some joker told MAS management and Khazanah that its not right for several legal reasons. So now, all info to Tony and AA must be vetted by some expensive consultant.

    Can someone , please confirm the above info???

    • bodoh.pandai

      Thank you for your comments. Your comments are not “bodoh” at all but very “pandai”. Who are the “jokers” who told MAS that all documents on Tony/AA must be vetted by expensive consultant? For consultant, they would have appointed Morgan Stanley but for MAS I don’t know who it will appoint. Bina tak Fikir is no longer relevant now. So the whizz kid Rashdan can shed some light on the appointment of the new consultants as he was one of them for the failed WAU exercise. The whizz kid is now the deputy CEO and who know nut about airline but only hot air. This is how MAS is going to be saved.

      I am very impressed by Dr Wafi’s qualifications. He is an expert in COMPETITION LAW. There are not many experts like Dr Wafi in the world. That’s why I am asking for his learned opinions on those decisions made after the whizz kid Rashdan took over the MAS management from Tengku Azmil and the secret share swap itself.

      Dr Wafi has been known to have given talks on comeptition law around the country and he is also the Head of Legal / Risk in MAS, therefore, he is the most qualified person to give his learned opinion on the matter.

      In the interim, I hope that Dr Wafi will not take part in any discussion in the Malaysian Competition Commission regarding this share swap deal based on the principle of conflict of interest. Another new posting will be done on this matter very very soon.

      Thank you.

      we choo keong

  4. Dr Wafi pun bukan pandai sangat. Siapa bapak dia. 7 atau 8 tahun dahulu bapak dia berkuasa. Tan Sri abdulk Hamid, Menteri Hal Ehwal Islam. TST lah.

    Kalau dia pandai dia mesti menentang share swap ini kerana bertentangan dengan Comnpetition Law 2010.

    Kalau diapandai kenapa MAS ada masalah kontrak dengan Alwafeer Air di mana 3 jet jumbo miliki MAS masih dibawah kawalan Alwafeer dan tiada ada apa bayaran leasing sehingga kini. Outstanding rental lebih daripada 2 tahun. sebulan rental lebih kurang RM3 juta. Sekarang wnag tertunggak telah melebihi RM50 juta.

    Dr Wafi kau buat apa atas masalah ini. Qualifications semua itu benarkah? “obtained posgraduate qualification on competition law”. Bukankah share swap ini telah bertentangan dengan Compeition law.

    Saya adalah perkerja dalam MAS. Saya tahulah standard dia sampai mana? tiada standardlah. sebab dia boleh berdiam diri dalam perkara share swap. TF udah masuk dalam MAS dan dia masih dalam keadaan tertidur.

    ptui! dapat gelaan Dr tetapi tidakan dan peranan yagn tidak bersama dengan gelaran dia. Ptui! Ptuui! Ptui!

  5. The not 1 but 2 Con sultan company are Allen & overy and Bain & co. Bankrap lagi lah duit rakyat . Ptui, Pruitt ptui ptui

  6. Dr Wafi, please tell us why MAS had to suffer in the case of Alwafeer Air? What were you doing in MAS? Why until now no payment of rental of 3 aircraft being paid to MAS?

    Have you been sleeping? or you were too busy advising Rashdan and Azman Mokhtar to do the share swap? What Dr? Dr untuk longkang bolehlah!

  7. Dr Wafi and Rashdan: Dua kali lima, lima kali dua. They only knew how to appoint consultants so that they can hide behind the reports when things went wrong.

    Anybody can run a company like the way they did. How much money MAS had to pay for Allen & Overy and Bain & Co? This was how they saved MAS. With them/dead wood around MAS guarantee koyak at the end of the day.

  8. What qualifications when chose to close both eyes or refused to see what were going on or what Rashdan was trying to do i.e. the killing of Firefly. Degree swap? The government must be stupid to appoint Dr Wafi as advisor to Malaysian Competition Commission. If he is worth his qualifications then we wouldn’t have seen the share swap in such a shape. MAS employees are not as stupid as this Dr. We are watching them closely especially that arrogant boy Rashdan and his good friend Tony.

  9. Thank you for placing one person so high up there.
    I wonder how come you do not see those in Khazanah and the LCC as equally responsible for the deal.
    You are a lawyer yourself and yet you ignore the fact that this development had also engaged the legal expertise of the other parties involved.
    By right you should pose the question to all involved and also to the rest, as well as Malaysian Competition Commission.
    Funny, but you are being selective – and biased in your attacks against one person.
    Do read all the media statements issued on this deal. Log on to both the airlines’ websites for clarification first before writing.

    • Parameswara

      Thank you for visiting my blog and joining in to discuss this matter of national importance and it also involved our national carrier and ambassador.

      Please don’t jump the gun. I am not putting “one person” so high. If you only wait for a while then you will know whether I put that “one person” so high. If the person has a string of qualifications I had to state the facts unless you can tell me that they were all false. Then I will correct my posting. If you care to read the comments for this posting, you will see that they were not that “high” after all.

      I am also not attacking one person. I don’t know which “one person” that you were talking about. I have written about several people in my blog and they were all based on facts.

      Surely, you don’t expect me as an MP and lawyer to keep quiet when I see something so glaringly wrong. This share swap was negotiated in utmost secrecy and the story was broke by one news portal, Malaysian Insider on 6-8-2011 with clinical accuracy. On 8-8-2011 both AirAsia and MAS counters were suspended pending announcement. On 9-9-2011 came the announcement of the secret share swap and the signing ceremony.

      Please take note that no announcement have been made to Bursa KL by both MAS and AirAsia prior to the suspension. Don”t you think that the negotiations on the such a big deal worth billion of RM were material enough to be announced to Bursa KL so as to keep the investing public informed.

      I can never agree to a share swap price that based on share prices on 5-8-2011. Common sense tells me that share swap should be based on Net Tangible Assets and due diligence exercise had to be done before commencing serious negotiation.

      Perhaps you might want to let me know which “one person” that I was attacking and which statement of mine on that “one person” was false.

      Until now Tan Sri Azman, the whizz kid En Mohammed Rashdan, Datuk Azman Yahya, Tan Sri Md Nor Md Yusof or Tan Sri Tony Fernandes could not provide the details of the so-called “Collaborative Framework”.

      I will carry on posting what I think are correct and based on facts before me. If I am wrong factually I will of course be more than happy to retract and apologise for the mistakes.

      I am sorry if that if that “one person” that you are representing felt hurt over what I have stated. My advice to him is”If you can stand the heat then leaves the kitchen”.

      Thank you.

      wee choo keong

  10. Hey param , be specific will you. Jangan tembak blank saja. Apanama itu one person. YB , don’t waste time on him, he got no local standi.

  11. Parameswara

    Why are you so scared to put your boss’ name when you refer to ONE PERSON. Aiyoyo! These days people is shy of using their own surname. Maybe they are ashamed of their own surname and similarly you are also ashamed of your boss’ name. Very shameful.

  12. WEECHOOKEONG
    Terima kasih lagi sekali kerana doggegly persistent investigation…
    Terus kan kerja kuat anda, kami rakyat mengharap kan the end of the state sponsored self enrichment at all levels of governance.
    arjuna waspada
    changkat lobak.

  13. It’s funny when Dr. Wafi issued a memo to all MAS staff preventing them from sharing the sensitive information regarding the company business to the AA staff as it’s against the anti trust law, when actual fact that TF and Kamaruddin is the BOD of MAS..

  14. YB WCK, susah lah ada qualifications, so called experts,tapi now trends in our Malaysian Land semua jenis yang harap pagar,tapi pagar makan padi.

  15. At least he has a Ph.D.. This Wafi guy sounds quite good laaa.. So you all better shut the hell up… He is so much better than all you blabber mouthss

  16. Anon 66

    YB should not waste time with this TF the hot air. Why must YB go and see him. Who does he think he is? YB is a law maker to look after our interest and MAS employees interest. If TF wants to meet YB then ask him to go to Parliament. May be he should offer himself as a witness to be asked pertinent questions on the share swap during the PAC meeting.

    Bloody arrogant bugger. He thinks that he can bullshit his friend Tan Sri Azman and his running boy Rashdan so he can also do to others.

    He better start to worry about the 200 planes that he has committed to buy and the fluctuation of the forex rate because that will affect the AA’s profit figure. Please look at the AA’s account: Revenue for June 2011 almost RM1 billion and profit about RM400 million. Not bad profit margin 40% for an airline. Stop bullshitting ok. No airline in the world can make a profit of more than 12%. It was just creative accounting. He can only fool his cronies in the main stream papers but not all the rakyat.

    Ptui! Ptui! Ptui!.

  17. 40% is just an insane numbers…tok aku pun tak caya…dia cakap pembohong la…”tok tengok orang nek kapal dia tak banyak mana pun…sembang karas(sejenis kuih yang rapuh) jea tu…pepak (gigit) lebih tapi perut xkenyang…”…hahaha…org tua kt kg pun xcaya inikan pula rakyat yg pndai menilai n bijak pnadai sekarang ni…dia igt rakyat bodoh kot…jagan TF hanya mengharap bintang dilangit, dia lupa rumput dibumi…

    p/s:aku tukis dalam Bahasa Malaysia…TF bukan paham pun…dia hanya tau english…english is imprtant but identity is a must…fikir-fikirkan…dlm blog TF buat poll(dia cakap dia Malaysian)…org Malaysia yg xpnadai B,Malaysia…aku gelak bergolek2…hahahhaaha

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