Dep MOF: SC and Bursa KL have commenced investigations into insider trading and non-announcement of the secret MAS – AirAsia share swap

YB Senator Datuk Awang Adek with Tan Sri Tony Fernandes during the "Sleepy Era"

In reply to yours truly questions on the secret MAS – AirAsia share swap during the Committee Stage of the Budget Debate on 2-11-2011, HERE,  the Deputy Minister of Finance, YB Senator Datuk Awang Adek, told Parliament before noon today as follows:

  1. That the decision by Khazanah to apply the formula for the said secret share swap based on the closing MAS and AirAsia Bhd share price on 5-8-2011 (prior to the suspension) was correct;

  2. That the Securities Commission and Bursa KL has commenced their investigations into the allegations of insider trading of MAS and AirAsia Bhd counters and the non-announcement of the impending secret MAS – AirAsia share swap to Bursa KL prior to 9-10-2011 where the said secret share swap was inked between Tan Sri Azman Mokhtar and Tan Sri Tony Fernandes;

  3. That at this stage the Securities Commission and Bursa KL will not invite MACC to join in the investigations into the allegations of  insider trading and for not making the necessary announcement to Bursa KL prior to the inking of the said secret share swap agreement. 


Notes:

It was most shocking to learn that the formula for the said secret share swap was not based on Net Tangible Assets, which should have been used in this case because MAS is an asset back corporation and Airasia Bhd is not.

It must be noted that under Disclosure Guide Bursa KL Rule 9.03 (2) states:

“An information is considered material if it is reasonably expected to have a material effect on the:

 a.  price, value or market activity of its securities; or 

b.  investors decision in determining his choice of action.”

The Disclosure Guide Bursa KL Rule 1.11 provides:  In making the assessment of whether an event or information is material for the purpose of announcement, it is important for the listed issuer to take into account relevant factors such as the following:

a.   the anticipated impact of the information on the listed issuers’s entire scope of activities; or

b.  the anticipated impact of the information on the listed issuer’s financial position or performance; or

c.  the relevance of the information on the factors that determine the price of the listed securities.”

The counters of both MAS and AirAsia Bhd share were suspended on 8-8-2011 pending announcement with no detail at all. On 9-8-2011 the said secret share swap agreement was signed.  

From the website of Bursa KL, prior to 9-8-2011 there was no announcement of whatsoever nature Bursa KL pertaining to the said secret MAS- AirAsia share swap.

However, on 6-8-2011 the MalaysianInsider, a new portal, broke the news of the secret share swap with clinical accuracy on the details of the said secret share swap.

On 6-8-2011 the Star published about the said secret share swap based on sources.

Published: Saturday August 6, 2011 MYT 9:36:00 PM  Star

Updated: Saturday August 6, 2011 MYT 9:37:03 PM

MAS, Air Asia in share-swap deal

KUALA LUMPUR: Malaysia Airlines and AirAsia will swap shares in a deal which will see Tan Sri Tony Fernandes become the single biggest shareholder.

Sources said the deal, struck last week after negotiations over the past year, became urgent after MAS’ poor showing in the last two quarters.

Fernandes is set to get 20% of MAS equity under the deal that is to be signed next week, with some sources saying it had already received the Government’s approval and could be inked by Monday.

Industry players expressed surprise at the deal because of past animosity between the management of the two airlines.

Those who were aware of the negotiations were also surprised at the speed at which it was concluded.”

Yours truly leaves it to you to judge whether the above facts were material enough to “Cause the anticipated impact” on the MAS and AirAsia entire scope of their activities, financial position and performance and determine the price of the MAS and AirAsia share price.  Last week the KL Session Court, Dauk Jagjit Singh has found the two ex-directors of Transmile Bhd for filing false information with Bursa KL and both of them  were sentenced to one year jail and RM300,000 fine. How about not making any announcement at all? The sentence should be more severe!  Read HERE.

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21 thoughts on “Dep MOF: SC and Bursa KL have commenced investigations into insider trading and non-announcement of the secret MAS – AirAsia share swap

  1. Dan of Khazanah

    Now the Red Indian and his Khazanah gang must be feeling very uncomfortable. They have stripped like the onion skins – one by one. 1 year jail and RM300,000 fine for false reporting! Those responsible should be given at least a good 5 years for not reporting such a big business deal that was not in the national interests.

    Datuk Azman Yahya, you are one of the highly qualified idiot together with Rashdan and Azman Mokhtar get ready to be interrogated by SC and Bursa KL. With your connection you think you can get off this time? Remember no more 4th Floor to protect you lot.

    Reply
  2. Eduan of MAS

    Dan of Khazanah

    I agree with you that those highly qualified idiots should be hauled up by the authorities for questioning. Especially the two Bina Tak Fikir boys in Khazanah. They could no longer differentiate what is a national asset and what is not. They just want to screw it.

    Reply
  3. The Nor Yacop Gang

    The picture show both of them looked very very happy during the Tingkat Empat Happy Days. Now they had to live with stormy days ahead. Lets see for how long the SC and Bursa going to cover up for them. Let see whether their taiko Nor Yacob can do magic show for them. YB please press on. Don’t let SC and Bursa to do a bull shit investigations. The failure to file the announcement with KLSE is a clear case. F them properly. Thank you for your patient YB in digging these bast..d nonsense.

    Reply
  4. Lee

    Screw the LIAR and his friends Azman Mokhtar, Rashdan, Md Nor and Azman Yahya. The corporate parasites must be flushed out from the system behind the country is finished. I just cannot understand these educated people can allow their friend to makan our national carrier.

    Reply
  5. Con man toni

    He he he told you so, Toni. You can sell fridge to Eskimo, Virgins to Branson but never MAS to us. Toni the great being exposed.

    Reply
  6. Pariah At Work

    Con man toni

    But you have Melayu like Tan Sri Azman Mokhtar, Md Nor, Rashdan, Azman Yahya bought locks, stocks and barrels from the Pariah. 6 MAS MDs have failed but these 4 Melayu believe in the Pariah. therefore, Pariah can still sell his sob stories to the MAS union leaders.That why all very very quiet. Kena suab dengan kontrak kot!

    Reply
  7. Khairul di Khazanah

    The business model is all about lobby, lies, lies, lies and spins, spins and spins. But not for long. Now being stripped naked. “If you price it low, Malaysians are prepared to risk their life.” This how that Red Indian thought about us Malaysians and yet he wanted to do business here. He should try Singapore. I am sure that Singapore Airport Authority will allow him to owe airport for many years and then got a discount for paying up.We know of his nonsense but the Ex BinaFikir dudak suruhan si pariah will akur aja! You are right YB when you described them in Parliament as “Harapkan pagar, pagar makan padi.”

    Reply
  8. Jay

    I remember reading what the red Indian talking about Malaysia. “Price the ticket low enough and Malaysian will risk their life. This is how the red Indian thought about we Malaysians. This also show that safety is not of priority in his business model.Further he will price the fare low but whack you with all kinds of surcharges like blanket, mineral water and etc. Soon charges for using the toilet in the plane as well as in LCCT.

    I hope that Zarina will act professionally although AA is part of the 4th Floor set up before. Hope that MAcc will also keep an eye on SC and Bursa. If these two agencies are not acting properly then public confidence will be shattered.

    Reply
  9. Ahamd Khazanah

    Clear case of misleading the investing public by not making the announcement to Bursa KL when they were negotiating on this billion RM transaction. A clear breach of the Disclosure Guideline. YB whack the Bursa and SC on why are they not acting in the first place. Is Zarina and the Bursa boss sleeping? We know that Azman Mokhtar, Rashdan and Md Nor are of the same kind.

    Azman Mokhtar is sending Khazanah reps to attend Parliament daily to gauge what are going on. He and his gang are feeling the heat. Whack them more as they were the main culprits in the whole share swap. They were trying to fool Malaysians especially the Malay over this dirty share swap.

    Reply
  10. Rakyat Malaysia Yang Tiada Pilihan Lain

    “If you price it low, Malaysians are prepared to risk their life.”…funny statement…when my mum heard about this…she doesnt want me to fly and now she’s coming to KL to celebrate Hari Raya Korban because i said before i’m going home to Langkawi with AK (i bought as MYR50 but i have to pay more than that because i definitely needs to buy insurance, baggage and ofcoz they charge me convenience fees for MYR16 for return tickets)…i wish i could fly MH but the price is too high (MYR400) just for 1 hour flight…at the time of Idris Jala i just need to pay MYR100++ for return tickets KUL-LGK-KUL…really miss that moment…Firefly had been terminated before fly to Langkawi this 1/12/2011…at that time me, my family and friends was thinking that we could fly LCC with aerobridges and many conveniences…but now Firefly jet terminated…because of what???the answer is TF…

    i wonder…sebab tu TF beli banyak2 kapal…kalau apa2 terjadi senang…masih ada kapal boleh terbang…i think after this he we sells all the MH boeings just to buy Airbuses so that AK can use it…really funny…memalukan…pencekik darah terhebat Malaya…

    Reply
  11. Razak of MAS

    Awang Adek the former 4th floor boy was talking cock. This is a clear case of not filing the announcement with Bursa Kl. Such a big transaction should be announcement so that the investing public will know about the actual state of affairs of the MAS and AirAsia stocks. I am sure that our YB will put all the pressure for them to carry out the investigation properly.

    We cannot allow the Red Indian and his macai in Khazanah cannot play the fool anymore. The share swap stinks. Najib must stop it so that MAS can grow on its own. Who need AirAsia just full of hype and bullshitting and lying by the Red Indian all the times. He is taking Malaysian and the Government for a ride. He said he didn’t get help. Now it has been shown that they got RM50 million for the RAS and MAS got only half of it and provide a better service.

    Reply
    1. weechookeong Post author

      Zam

      Many MPs have spoken about this matter too. They have strongly critised the Securities Commission. It most unfortunate that all the personalities involved are connected one way or another. We will pursue the matter in Parliament.

      Thank you for your comments.

      May I wish you, your family and other Muslims Selamat Hari Raya Haji.

      Regards

      wee choo keong

      Reply
  12. kenny of MAS

    The share swap was a bloody scam. Tan Sri Azman and his ex-business partner Rashdan, Tan Sri Md Nor, Datuk Azman Yahya of Scomi and, of course Tan Sri They must iony Fernandes, the Dr Spinner and liar, must be held responsible for the share swap.

    Reply
  13. Khazanah Man

    If a proper investigations are carried out, I am sure that a few culprits officers in Khazanah and their close friends will definitely be caught. Good sent them to jail for a change. They have f..cked up this country and abused their positions for far too long.

    How are you Tan Sri Azman Mokhtar? I hope you are in good health and still flying very high in Khazanah? I have not seen you moving around in Khazanah like you have been doing?

    Aren’t you ashamed of the share swap based on share price? You are a shamed to this country. If I were you, i will just resign and fade away.

    Reply
  14. Old Man

    Tony, Tony, Tony, I wish you would stop all the lying and twisting the facts. Your recent statement that AK did ot benefit from FAX subsidies is an insult to the intelligence of many. Your mother is turning in her grave with all the lies you are spewing out.

    Lets study the facts:

    1. RAS was awarded to AK to operate.

    2. AK sub-contracts it to FAX making FAX the sole operator of RAS

    3. The material shareholders of FAX are the same as AK.

    4. FAX charges AK for operating RAS with a overrider to cover its other “expenses” including such above board items as financial charges etc.

    5. AK claims from the Government subsidies to cover the losses incurred by FAX also with a “little” on top to cover AK administratives and other costs.

    6. So in effect, neither AK nor FAX sufferred any losses for operating RAS because the Government undewrites the losses.

    7. When MASWings operates RAS, MASWings only receives subsidies from the government to cover their operating losses i.e.total cost less revenue and other expenses that will not be born by the Government.

    8. MASWings operates RAS with newer equipment, at far superior service, with more frequencies and destinations. These are all at a higher cost now.

    9. The subsidies received by MASWings is only HALF of the amount you received.

    From the above, one can only conclude that the “charges” over and above the base costs makes up at least half of the amount claimed.

    So one can also conclude that MASWings is more competent than FAX to operate RAS.

    You are now spinning that AK did not benefit from the subsidies and it was FAX. We are playing with semantics here.

    Froms the facts above, one can also conclude that some of the residual “losses” incurred as a result of winding down by FAX is nothing more than the cost of you folly. ifor one do not believe that you dis not factor this in your claims to the Government.

    I would like to remind you that during the time you were pitching for RAS, you declared so proudly that AK can operate RAS at a better service profitably because your low cost model fits it well. You hoodwink the states promises into backing your demand for RAS. In the first place it was AK how come it became FAX, water under the bridge of course.

    Lets face facts, it was never your intention to operate RAS in the first place. You went for it as a means of getting an AOC. Well getting the ever so precious AOC is not a benefit, what is?

    Having 9,000 staff who carried 130M pax and won numerous awards does not make you a saint. It has no relevance to the subject at hand i.e. the MYR249M subsidies received by FAX to cover losses.

    You, I and many knows that passing the AG’s Office audit is by no means a measure of the rightiousness of raw deal everyone else got out of this.

    I would like to also remind you of how you also once proudly declared that the Government was being unfair to you and that MAS thrives on Government protection and subsidies.

    You are a nothing more than an unscroupulous greedy
    Iiar.

    Reply
  15. Rosli from MAS

    Old Man

    The MAS staff and other Malaysians are with you. You are spot on with the write up. Thank you for enlightening us. Syabas! screw that LIAR. The liar of the worst kind.

    Reply
  16. Golden Boy

    Old Man

    Why are you running Malaysian hero down like that? MAS need this liar otherwise MAS wouldn’t have sponsored QPR home jersey for RM18 million. MAS will also go under without this hero, lobbyist, dr spinner and etc. He had to twist his facts otherwise how was he going to get Malaysians and the government to believe him. The hero has also said he got very little help from Badawi but Najib and Mahathir. We all knew that he got a big leg on from Badawi during the 4th Floor Administration. He also said that “if you price the fare low enough, Malaysians will risk their life. This is his business model. God bless Malaysia. This is the hero that is going to save MAS.

    Reply

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