Questions time 9-11-2011: MAS sold 70% of MAS Catering & signed a 25 year exclusive contract

09.11.2011

Y.B. TUAN WEE CHOO KEONG [ WANGSA MAJU ] minta MENTERI KEWANGAN menyatakan:-

(a)     mengapa pada tahun 2003, MAS yang berada di bawah Tan Sri Md Nor Md Yusof, yang pada masa itu merupakan Pengarah Urusan MAS dan juga arkitek bagi Widespread Asset Un-bundling aka “WAU” telah menjual 70% saham daripada bahagian di dalam MAS Catering Sdn Bhd, sebuah syarikat MAS yang ‘profitable’ dengan purata perolehan tahunan sebanyak RM300 – RM400 juta dan keuntungan bersih sebanyak RM50 juta atau lebih setiap tahun, kepada sebuah syarikat dan serentak dengan itu MAS memasuki suatu perjanjian yang dianggap berat sebelah terhadap MAS di mana MAS terpaksa membeli semua makanan dan minuman serta lain-lain perkhidmatan kabin dengan keuntungan jaminan daripada syarikat tersebut selama 25 tahun; dan

(b)     nama syarikat itu dan juga harga jualan serta butir-butir penuh perjanjian selama 25 tahun tersebut dan apakah tindakan yang telah diambil oleh Khazanah untuk memecahkan perjanjian yang tidak adil ini yang boleh menjejaskan pertumbuhan MAS dan/atau untuk meringankan beban kewangan MAS.

JAWAPAN

Tuan Yang di-Pertua,

Untuk makluman Yang Berhormat, pada 30 Julai 2002 Malaysian Airline System Bhd (MAS) telah melupuskan 70% pegangan dalam MAS Catering Sdn Bhd (MCSB) kepada Konsortium Gubahan Saujana Sdn Bhd pada harga jualan sebanyak RM175 juta, berdasarkan kajian menyeluruh (due diligence) dan nilai pasaran yang adil (fair market value).

Pelupusan ini merupakan sebahagian daripada strategi penyusunan semula kewangan bagi membolehkan MAS memberi tumpuan kepada aktiviti terasnya iaitu dalam penyediaan perkhidmatan penerbangan domestik dan antarabangsa serta perkhidmatan kargo. Selain itu, pelupusan ini juga membolehkan MAS memperoleh dana yang sangat diperlukan pada ketika itu di samping mengekalkan 30% pegangan dalam MCSB untuk memelihara kepentingannya.

Susulan pelupusan saham berkenaan, MAS dan MCSB telah menandatangani Catering Agreement pada 25 September 2003. Perjanjian untuk tempoh 25 tahun berkenaan merupakan satu perkongsian perniagaan strategic jangka panjang di antara syarikat penerbangan dan pembekal/penyaji makanan dan wajar diteruskan bagi memastikan tahap kualiti makanan yang disediakan oleh MAS sentiasa terjamin dan memuaskan penumpangnya. Catering Agreement ini boleh ditamatkan dengan syarat, pihak yang ingin menamatkan perjanjian perlu membeli saham pihak yang bertentangan (Buy Back Event).

Read HERE, HERE for related article on MAS Catering Sdn Bhd who is the person behind Gubahan Saujana Sdn Bhd.

Notes:

  1. Widespread Assets Un-bundling aka as WAU was the brainchild of Tan Sri Md Nor Md Yusof the then Managing Director of MAS and the newly crowned Chairman of MAS.

  2. Tan Sri Md Nor Md Yusof was instrumental in appointing the consultant firm, BinaFikir Sdn Bhd.

  3. BinaFikir Sdn Bhd was incorporated in January 2002 by Tan Sri Azman Mokhtar and En Mohammed Rashdan Yusof aka Danny (Rashdan)

  4. In March 2002 BinaFikir Sdn Bhd was appointed the consultant to “SAVE”   MAS. When BinaFikir Sdn Bhd was carrying out WAU, both Tan Sri Azman and Rashdan were stationed full time in MAS headquarters. Both of them took about eight and half month (in November 2002) to complete WAU. Read HERE.

  5. Thereafter, BinaFikir Sdn Bhd was appointed as the consultant firm to many GLCs until 2008. 

  6. On 1-6-2004 (after three years BinaFikir Sdn Bhd) Tan Sri Azman Mokhtar was appointed by the then PM, Tun Abdullah bin Hj Ahmad Badawi, as the MD of Khazanah Nasional Sdn Bhd.  This appointment must have been made by chance! I believe that Tan Sri Nor Mohamad Yacop, the then powerful Minister of Finance II, had no hand in the said appointment.

  7. In 2008 (six years after incorporation) Maybank Bhd bought BinaFikir Sdn Bhd for RM8 millions. By the way Maybank Bhd is one of the GLCs.  Rashdan was  part of BinaFikir Sdn Bhd, a subsidiary of Maybank Bhd, for a short spell.

  8. Soon after Rashdan left BinaFikir Sdn Bhd, he was appointed by Tan Sri Azman Mokhtar to a high position in Khazanah Nasional Bhd.

  9. After inking the secret MAS-Asia share swap on 9-8-2011,  Rashdan was appointed as the key man in MAS and now the Deputy CEO in MAS.

  10. Despite the financial problems that MAS was facing, on 16-8-2011 ( 7 days after inking the said secret share swap) Rashdan flew to London to sign the RM18 millions sponsorship of QPR home jersey for 2 years. It was, of course, by chance that in April 2011 Tan Sri Tony Fernandes bought a substantial shares in QPR! By the way Genting paid RM17 millions for also a two year sponsorship for Aston Villa home and away jersey.

  11. Thereafter, MAS started to terminate Firefly profitable routes from JB to KK and Kuching, cancel full load Firefly flights during the recent Raya season causing great incoveniences to about 7,000 passengers, who have already purchased tickets, and in October 2011 the termination of MAS profitable route to Bandung, Indonesia, leaving AirAsia to dominate this sector.

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16 thoughts on “Questions time 9-11-2011: MAS sold 70% of MAS Catering & signed a 25 year exclusive contract

  1. Halas

    Dear YB,

    Just to share with you news in The Star today about KJ’s good friend, Ahmad Zaki Zahid and his good friends are now Board of Directors of Kulim and D Realty. Are they on their way of taking over Johor Corp? What about the 28-year old young ciku, Wan MF (MF as Mother Fucker?) who is also the special officer to MB Johor with no business experience now sitting as BOD of the two Johor Corp’s subsidiaries?

    Young blood for Kulim and DRealty boards – The Star (10 Nov 2011)

    PETALING JAYA: Two companies in Johor Corp’s (JCorp) stable Kulim (M) Bhd and Damansara Realty Bhd (DRealty) saw the entry of fresh faces on their boards, with Kulim adding four new directors and DRealty, three.

    Three of Kulim’s new directors have also been appointed to DRealty board. Plantation giant Kulim’s new executive director is Datuk Ahmad Zaki Zahid, 44, the former executive director of Malaysian Resources Corp Bhd who left the property group in October.

    Zaki has had stints at Booz Allen Hamilton and the Securities Commission and was once the special assistant to then prime minister Tun Abdullah Ahmad Badawi. Zaki is now also DRealty managing director.

    Another new face to the board is non-independent and non-executive director Wan Mohd Firdaus Wan Mohd Fuaad, 28, who is currently the special officer to Mentri Besar of Johor.

    The other two appointed to Kulim board are independent and non-executive directors Edward Leung Kok Keong, 44, and Natasha Kamaluddin, 39. Natasha, a management consultant stalwart and current partner and director of Ethos & Co, is the only one of Kulim’s four new directors not appointed to DRealty board.

    Leung holds two other directorships in Tebrau Teguh Bhd and ACE Market-listed Asia Bioenergy Technologies Bhd and is a chartered accountant.

    All four board members are relatively young. Insiders said part of the rationale for bringing in the new board members is for them to provide new perspectives and ideas on how to restructure the companies under JCorp.

    State-owned JCorp is an asset-rich and diversified group but is saddled with mounting debt problems. By mid-next year, it will have to settle up to RM3.6bil of its debt obligations. The group has been mulling a number of options on how to use its vast asset base to solve this problem, resulting in the recent sale of oil palm estates and mills to its 53% subsidiary, Kulim, for RM700mil.

    Listed companies under JCorp include New Britain Palm Oil Ltd, QSR Brands Bhd and KFC Holdings (M) Bhd.

    Reply
  2. Khinzirnah

    Dear YB,

    Please read The Star today, business section, page 3. Tony is planning to start a new executive jet service, Caterham Jet Sdn Bhd. Guess who is the investor? AirAsia or Malaysia Airlines?

    Thursday November 10, 2011

    Fernandes looking at executive jet service?
    By B.K. SIDHU

    PETALING JAYA: Executive jet operator Caterham Jet Sdn Bhd said to be owned by Tan Sri Tony Fernandes, his buddy Datuk Kamarudin Meranun and an American investor will initially have about seven jets that will ply routes within the 2-3 hour flying range.

    “The deposit for the jets has been paid. Six are CRJ200s jets and one Global Express jet. The jets can carry about 50 passengers each based on economy seating model,” said a source.

    Both Fernandes and Kamarudin were not available for comment.

    “The plan is still at its early stage but Tune Air is not involved in this deal for now, which is to set up a new airline to service the business and executive market in the region. It is a private deal and there could be more investors involved at a later stage if all goes as planned,” said the source.

    Those in the know claim that Malaysia Airlines (MAS) could even be roped in as an investor, given the national carrier’s aim to re-energise itself into a premium full-service carrier.

    “You never know what the big plan is, but suffice to say that the promoters are saying there is room for jet services out of Subang and also other locations in the region given the growing affluence,” said sources.

    The sources added that there might even be more than one hub.

    When the company will begin services will depend on how soon it can get the aircraft, which are being retrofitted currently, and how fast it can secure the air operator’s certificate.

    A report said that Fernandes was set to expand his empire further as he moved to start a new super-premium full-service carrier that will compete head-on with Qantas’ upcoming Asia-based super-premium FSC called RedQ.

    The report said it expected Catetham Jet to take to the skies in May next year. It would be a point-to-point service, operating routes such Bangkok, Jakarta and Singapore.

    Fernandes and Kamarudin now own stakes in AirAsia, its sister airline, AirAsia X and MAS, which has low-cost airline Firefly.

    Reply
  3. Penumpang Marah

    The cancellation of Johannesburg, Cape Town and Buenos Aires including Dubai???

    After this AirAsia X will fly dubai…wow…hebat sangat CCF Tony ni…cam sial…

    AirAsia X should stop immediately as TF stopped firefly jets just to make AirAsia fly exclusively…why dont AirAsia is just flying asean and domestic sectors..MAS can fly exclusively Asian and other long haul sectors…

    Ini baru adil…TF jangan nak bodohkan orang lain sedangkan kau membodohkan diri ko sendiri…pengkhinat negara…

    Reply
  4. Anonymous

    Dear YB, seems like we have been harping and harping and harping on theses issues for many, many months now but they have fallen to deaf ears. The best they can respond are feeble, standard, glossed over answers that do not offer any concrete explanations. Either the authorities are in cahoots or they just dont care. Lets do a blitz flyer campaign ke serata Msia. Maybe then, they will take heed.

    Reply
  5. Thirddevil

    If we looked at all the appointed personalities to help save ” MAS”, majority of the players are the same persons who screwed MAS before. If they failed before, are they going to be successful this time? . Only an idiot will do the same thing and expect a different result. And where did all these guys graduated from? Cambridge!!!

    Reply
  6. Hafiz

    Thirddevil

    You are absolutely right. Those idiots like Rashdan, Tan Sri Md Nor, Datuk Azman Yahya were involved in the WAU project. Md Nor was the head and Rashdna, the Bina Tak Fikir consultant and Datuk Azman was the director of MAS. how can these three musketeers be appointed to save MAS when they have previous track records of screwing MAS. Now appointed to save MAS: what a big joke! This Azman Mokhtar the Khazanah MD was also the Bina Tak Fikir is one of the main culprits in the secret share swap. Throw them out from MAS that by itself will be a form of saving MAS.

    Reply
  7. Jason

    The selling of 70% of MAS Catering was the job of Md Nor, Rashdan and Azman Mokhtar. Kumpulan Gubahan is the company controlled by Datuk Ibrahim Hj Ahmad Badawi. Now Anbdullah Badawi is the Advisor of MAS. Ptui! Ptui!Ptui!

    Remember Gubahan then sold 51% of its 70% in MAS Catering to Tamadam for RM130 million and the remaining 49% to LSG skychef. the selling price to LSG must be in the region of RM100 million if we were to go by the selling price to Tamadam. Bought 70% for RM175 million. Not a bad deal after all. Then a better deal of a 25 years exclusive contract with MAS. This was how these idiot save MAS.

    That was why the Advisor is so quiet about the share swap.

    Reply
  8. Dr. Mohamadon Abdullah

    Dear YB Wee Choo Keong,

    Item 1 and 2 of your note is not true.

    You have lifted the Corporate veil of Gubahan Saujana Sdn Bhd. Well Done. Now that it is being exposed what is next? LSG Sky Chef logo is all over the tarmac at KLIA, the main airline hub of the Country. Where is the Malaysian Pride?

    Reply
    1. weechookeong Post author

      Dr Mohamadom Abdullah

      Thank you for your comments.

      WAU was done when Tan Sri Md Nor Md Yusof was the MD of MAS. He was also the person who announced about he sale with the famous quote “to make MAS an asset light airline”. If it was not him then I hope that he will clarify the matter and put the records straight.

      Thank ou.

      WIth kindest regards

      Reply
  9. Anonymous

    I heard that the MAS internal communications machinery is now spinning to say that more of MAS staff are slowly beginning to accept the CCF.

    Reply
    1. weechookeong Post author

      Anonymous 12:25 pm

      How could CCF be good when it was done in secrecy with no details. All we can see for now were: terminations of full load Firefly flights during Raya season causing inconveniences caused to 7,000 passengers, Firefly routes between JB to KK & Kuching, MAS Bandung routes and RM18 millions sponsorship for QPR home jersey. Just because Tan Sri Tony Fernandes is he co-owner of QPR so MAS must sponsor when we are told that MAS is in financial problems. Wouldn’t it be better to use the RM18 millions to pay bonuses to MAS employees who have been working so hard for MAS all these years.

      Why must those consultants and top management staff be paid so high when they have no knowledge of the airline industry. All they have are just paper qualifications from OxBridge which mean nothing when managing an airline is concerned.

      MAS is facing problems of LEAKAGES. It is the same system that needs an overhaul. Alwafeer Air is a classic example of leakage in MAS.

      Thank you.

      Have a nice day.

      With kindest regards

      wee choo keong

      Reply
  10. TIme Traveller

    Dear YB,
    As we understand it, under the CCF, MAS would focus on being premium airline while AirAsia (AA) would focus on being a low cost carrier. What happen to AA premium products in its aircraft like the bigger seat, reclining seat etc. AA also have premium products aiming at the premium market. They should also withdraw this so that the line is clear between a low cost carrier and premium carrier. So business people will fly MAS. How many people are rich enough to fly premium. Only corporate people on business matters. Even now corporate people fly on AA because AA also offers premium products. AA must be fair. Dont bully MAS so much. After all MAS are run by ladies wearing skirts.
    Yes it’s sad that AA now monopolises the Bandung route out of KL. MAS took some of their Bandung market share when MAS operated this route so AA got mad. Why did MAS have to withdraw Bandung? Why not Medan or Surabaya? AA receive a lot of income from excess baggage from its Bandung sector because people really (and I mean REALLY) shop in bandung so with the 15kg baggage at RM35 is NOT just enough. MAS should cut some of its flights to Jakarta and move some to bandung. On certain days MAS flights out of Jakarta are merely 1 hour apart. Surely they can merge these flights.
    AA should not be given rights to fly to cities where MAS already flies to. How do you want to save MAS then? Each airline much not compete with each other. Just like AA dont want a competition from MAS and Firefly. Be a man and play a fair game TF.

    Reply
  11. Pingback: Azman Mokhtar Must Go Now (Part 3) | Jebat Must Die

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