MAS has been saved by the corp GURU?

Left - Rt: Dato' Kamarudin Meranun, Tan Sri Azman Mokhtar, Tan Sri Md Nor, Tan Sri Tony Fernandes, En Rashdan & Datuk Seri Nasir Tun Razak, CIMB CEO They were all members of a very happy family!

 

 

According to very reliable sources, on 21-11-2011 Tan Sri Azman Mokhtar told the Public Account Committee (PAC) the followings:

  • There were 50 verbal and written questions raised by 36 MPs regarding the secret MAS – AirAsia share swap and his brain child, the Collaborative Framework;

  • “MAS IS NOT BEING SOLD OUT:  the MAS Board composition remains balanced in line with SHAREHOLDINGS;

    Share swap resulted in Khazanah selling 685, 142, 000 MAS share (20.5%) to Tune Air in exchange for 277, 650,600 AirAsia shares (10% of AirAsia)”.

  • “EXTREMELY CHALLENGING AVIATION INDUSTRY REQUIRES RADICAL CHANGES TO BUSINESS MODEL OF MAS: therefore, collaboration and market segmentation by carries is the norm in aviation today, MAS losses exacerbating conditions for a refocus of segment / product”;

  • “FAIR SWAP VALUATION, AN ARM’S LENGTH TRANSACTIONS:  Share swap ratio between MAS  & AirAsia based 5-8-2011 market of both airlines; key valuation matrices supported the relatives swap ratio, as at share swap DATE, 15 of 22 analysts had buys calls on AirAsia while 10 of 15 had sell calls on MAS, all regulatory requirement strictly adhered to, overseen by the Boards of Khazanah and MAS”;

    (NOTES: Before the share swap was announced on 9-8-2011, the previous MAS Board didn’t know anything about the negotiations of the secret share swap resulting in YM Tengku Azmil and a few others Board members resigned in “protest” prior to or on the day of the said secret share swap announcement on 9-8-2011. Leaving behind Tan Sri Md Nor Md Yusof (ex-MD of MAS of WAU fame that he was responsible for appointing BinaFikir Sdn Bhd as MAS consultant, disposing 70% of MAS Catering Sdn Bhd to Gubahan Saujana Sdn Bhd [a company related to Datuk Ibrahim bin Hj Ahmad Badawi [the brother of Tun Abdullah Ahmad Badawi], Ex-Chairman of Security Commission) and Datuk Azman Yahya (also the key man in SCOMI) as Board members before the new appointment on 9-8-2011. Presumably, Tan Sri Azman Mokhtar meant that these were the two directors that were overseeing the regulatory requirement of the said share swap. It is hoped that the Security Commission and the Bursa KL will take note of the glaring facts revealed by Tan Sri Azman Mokhtar and that no DISCLOSURE by MAS Board of the possible MAS – AirAsia share swap and the movement of share prices of MAS and AirAsia Bhd during the material time i.e. end of June to 5-8-2011.  Arm’s length transactions involving the said share swap:  The said share swap was shrouded in secrecy. It must be noted that Tan Sri Azman Mokhtar, En Mohammed Rashdan, Tan Sri Tony Fernandes are known good friends. Perhaps Tan Sri Azman Mokthar should tell us what he meant by “arm length’s transaction”?  As far as yours truly is concerned it was just another beautiful big word like CCF fitting for the understanding of those with the background of consultant. When question was put: why the share swap was based on market cap of 5-8-2011 and not net tangible asset (NTA)?  The reply was: JUDGMENT CALL! What a brilliant reply.)

  • “COMPREHENSIVE COLLABORATIVE FRAMEWORK (CCF) IS REQUIRED FOR MAS & THE AVIATION SECTOR: Focused collaboration supports KLIA as a hub into other airports in Malaysia; CCF provides legal framework whereby only actions that benefits both parties will be executed; oversight via strong governance structure;  MAS needs to refocus on its products segment, increase yield and productivity for its long term survival, regardless of CCF, some operational improvements have already occurred”; 

    (Notes: Full details were not furnished to PAC with regards to the execution of the so-called legal framework to ensure all actions benefited both parties! Was the sponsorship of RM18 million for QPR home jersey by MAS, when MAS was bleeding, on 16-8-2011 [7 days of the inking of the said secret share swap was of benefit to MAS or Tan Sri Tony Fernandes, who is the co-owner of QPR?)

What a great idea from Tan Sri Azman! Tan Sri Azman had said on 16-8-2011 that AirAsia X Bhd is a DODGY deal!

PAC has also been told that “Both major shareholders believe that all airlines (MAS & AirAsia) will benefit greatly from the collaboration which will ultimately see greater and improved returns to all shareholders”.

Instead of joining the OneWorld with a membership of 12 other international IATA  airlines, Tan Sri Azman Mokhtar came up with such “great” idea where MAS and AirAsia X Sdn Bhd will be competing with Thai and SIA together with the other 22 international IATA airlines under the Star Alliance. Was it an afterthought?  By the way, Tan Sri Azman had declared to the bloggers on 16-8-2011 that “AirAsia X Sdn Bhd is a DODGY DEAL!’  Tan Sri Azman: Have you forgotten about this famous declaration of yours?)

  • “PUBLIC INTEREST CONSIDERATIONS HAVE APPROPRIATE SAFEGUARDS:  Subject to anti-competition scrutiny in Malaysia and other countries,  low cost carrier model requires low prices to attract increased volumes, consumers choice for full service and low cost offerings will be maintained and collaboration advisory panel is in place”, 

    (NOTES: To cater for consumers choice? With En Mohammed Rashdan Yusof (Rashdan) cancellations of many Firefly full load flights during the recent Raya season causing great inconveniences and heartache to about 7,000 “balik kampung” rakyat, termination of Firefly profitable routes from JB to Kuching and KK from 25-8-2011, termination of MAS profitable route to Bandung from 3-10-2011 and stopping the Firefly expansion plans under YM Tengku Azmil and Datuk Eddy Leong. Who are on the Collaboration Advisory Panel?  Only God knows. Based of the current trend of the decisions in MAS, the members of this panel must be Rashdan, the ex-business partner of Tan Sri Azman Mokthar in BinaFikir Sdn Bhd, Tan Sri Md Nor Md Yusof and Tan Sri Tony Fernandes. It is hoped that yours truly guess is wrong”.

 Tan Sri Azman Mokhtar also told PAC: “The Collaboration Agreement does not give rise to any commitment to collaborate until anti-trust analysis has been completed. Should the parties identify any area in which they can collaborate, they will make the necessary anti-trust assessment and seek approvals prior to implementation.”  Sounded very consultant liked.

If the said statements are anything to go by, all the said decisions of cancellation of Firefly and MAS routes, and the shelving of Firefly expansion plans have been done without approvals from the Malaysian Anti-Trust Commission, which will only come into effect on 1-1-2012. Then the said decisions should be rescinded forthwith. Don’t tell yours truly that all the said decisions have already been vetted by Dr Wafi, the world renowned authority on monopoly law.  By the way, Dr Wafi, you must have also vetted the Alwafeer Air lease agreements before execution by MAS that have cost MAS more than RM150 million losses! Another leakage in MAS.

The PAC hearing on 21-11-2011 was just a preliminary briefing without much questioning. Reliable sources said that several more long hearings will be fixed where Tan Sri Azman Mokhtar, En Ahmad Jauhari and others will be called for interrogation. Hopefully the directors of the previous MAS Board especially ex-MD, YM Tengku Azmil and the CEO of Firefly, Datuk Eddy Leong,  should also be called to enlighten the PAC and the nation of the true episode of this secret share swap.

By the way, the full details of the proceedings will be published and tabled in Parliament in due course. Your truly will alert all the readers when it was tabled so that you can read in  full via the official website of Parliament.

Next Change / Akan Datang!!!  The AJ’s briefing to PAC which will be just as interesting and informative as Tan Sri Azman Mokhtar!

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27 comments

  1. It stinks to the core bro, well done!I guess it goes way up the the pipe line. Mau kaya bolih, mau jadi ternama bolih,tetapi jangan lah makan kederat orang lain. It stinks whenever or whoever that son of Badawi is involved. Whenever that name is mentioned why does it always relates to corruptions?Thank god he’s no longer around. Sheesh, why are his SIL die hard fans are demanding for his ministerial post? To get the crumbs from his dinner table maybe? I guess so.Time for a change, but I guess The PM would love to have these post era Badawi’s in his cabinet. Only he knows why, everybody knows why except him, maybe he can answer in parliament to reply to Tun Mahathir’s rebuttal. Would love to hear his answer towards UMNO’s weakness. Anyway UMNO’s assembly is coming, so stand up to Tun M’s criticism and give a logical answer not one malaysia kind of thing! It works with other races not with the UMNO general Assembly. I love UMNO, and i was born before MERDEKA bro! have been thru all the prime ministers and I I have been there and done that!

  2. Amok, you are just too good for Khazanah. You should be working for the Pariah in AirAsia. I am sure that you will be able to promote AirAsia than you are in Khazanah. Your salary in Khazanah is a waste of public fund!

  3. YB please post the briefing by AJ. The MAS staff want to read what he had told PAC. Of course, we know he is just an empty barrel and he will echo what that Red Indian wants him to say. Sickening to see the MD of Khazanah talking like a salesman for AA.

  4. Mr. Azman just announced Special High Impact Transformation program for MAS. The acronym for this program will be MASHIT!

  5. No wonder MAS in such shit. All the problems in MAS are the responsibilities of Amzman Moktar because he should be overseeing the operations in MAS and other GLCs. When a GLC failed or lost money, Amok must take responsibility. Stop pushing the responsibilities away. You are the head of GLC. You have put the CEO there like you have put Rashdan, your bed Bina tai fakir partner, in MAS.

    In MAS case, you are the actual failure period.

  6. Azman, you have failed Malaysia. You have been in Khazanah since 1994. In 7 years what have your achieved? nothing except problems after problems for GLCs. In 2002 you were the WAU architect with that Rashdan. Thereafter, Rashdan sold BinaFikir to MAYbank for RM8 million in 2008 when you are the MD of Khazanah. Of course, that was done when the Sleepy Head was the PM where the 4th Floor was running the country.

    If you have any honor, just resign and fade away. Khazanah and the country does not need you and Rashdan. You can go to hell with such a briefing to PAC. I hope that PAC will make the recommendation that you be removed immediately and throw into the drain!

    I am ashamed to be in Khaznah when you are the MD. You are just good in appointing consultant firms to think for you and then pay them as though the money fallen from the sky. Please tell Malaysians how much consultant fees you habve paid since you took over Khazanah in June 2004?

  7. Sekarang kita siapa pengkhianat bangsa!

    Amok..lebih la kau turut dari tahta kerajaan KHAZANAH sebelum kau dipaksa turun.

    Khazanah bukan gudang duit untuk puak-puak kau buat kenduri.
    Lebih lama kau di Khazanah lebih cepat la PUNAH KANTUNG KHAZANAH. MACC tak perlu nak kasi layanan Tan Sri pada puak-puak (puaka) ni.

    Si AJ pun sama aje kalau nak pangil konsultan baru boleh nak uruskan MAS baik tak payah. Itu semua idea nak memusnahkan MAS SAHAJA.

  8. “When question was put: why the share swap was based on market cap of 5-8-2011 and not net tangible asset (NTA)? The reply was: JUDGMENT CALL!”

    And the public is paying RM100K monthly salary for him to call that shot based on judgement and not proper due diligence!

    No wonder even TDM said BN is a gone case.

    Wake up Najib wake up before you end up worst than Tun LAH.

  9. Dear PAC
    Please do not get conned by these Con Sultans of Con

    The questions that need to be answered are
    a. Why MAS was allowed to rot after so many parachuted MDs
    b. After so many failures, why nobody has been penalized and public not informed but conned instead
    c. What make them think this share swap is the answer
    d. Why this ccf n swap are shoruded in secrecy
    e. Like Daud of Khazanah asked, how much money has MAS and Khazanah paid to the foreign consultants in MAS and Khazanah since 2001.

  10. Amok, how could it be arm’s length if it was done in secrecy! He thought that Malaysians are stupid. If the share swap was good for the country then the whole process should be transparent. Until today Amok and his ex business partner Rahsdan were not able to give details of CCF. CCF was just big word to scare but actually Amok himself is blurred about it that’s why he could not give details.

  11. YB Wee, What is your take on Tony Pua’s issue with KLIA2?

    “KUALA LUMPUR: DAP today asked Transport Minister Kong Cho Ha to give full disclosure on the construction of the new low cost carrier terminal (LCCT) in the wake of a news report about its cost ballooning.”

    The article in Free Malaysia Today ends with:-

    “In early 2009, Sime Darby, in partnership with budget carrier AirAsia, proposed to privately fund the construction of a new LCCT in Labu at the cost of RM1.6 billion.”

    “However, the government rejected the proposal, partly due to MAHB’s promise to build a new LCCT at KLIA for less than RM2 billion.”

    “The project was due for completion in June next year, but has now been delayed to 2013.”

    http://www.freemalaysiatoday.com/2011/11/23/dap-seeks-full-disclosure-on-klia2-costs/

    Tony Pua – a known neo-liberal – has a one-track mind to question project costs but says nothing about the AirAsia/MAS share swap, nor its consequences on MAS workers. Also the article’s ending tacitly supports the construction of the private Labu air terminal over KLIA2.

    Also, raising demands over a PAC investigation of KLIA2 will further delay its completion.

    Do you smell a rat?

    • Mr Charles F Moreira

      The facts speak for themselves. Full of publicity games. Their own conception of public interests.

      Thank you.

      Regards

      wee choo keong

  12. BERNAMA just announced Dato Eddy of FireFly will joined one of Khazanah’s company. When Tengku Azmil resigned from MAS, he joined Khazanah as Executive Director. Did you guys seen the pattern? There are nothing wrong with these two gentlemen during their time in managing MAS. Otherwise why on earth Khazanah wants to offer them a very lucrative and well paid job in Khazanah or related company is they are so rotten to the core. Or is this a form of payout to keep these guys quiet to suit Khazanah’s plan. Probably MACC should look into this – is this another form of bribery? . To Tengku Azmil and Eddy, if there is some Maruah left in your heart, you guys better resign – and speak out!

  13. Amok,

    You can’t make a judgement call and affect 19,000 staff of Malaysia Airlines, hundreds of Irefly passengers whose flight was cancelled, millions of MAS Passengers and in some ways, the entire population of Malaysia, and notwithstanding the Government of the day.

    Is it a judgement call or a call after the judgement was made?

    You seemed to be on a power binge. Ingat tuhan.

  14. Typical of a CON-sultant talks. He only has degree to hide behind. Maruah kosong! Rashdan same. Md Nor lebih kurang same. AJ sudah jadi budak suruhan. Shame on all of you. YB please post the AJ punya “tahit” kepada Khazanah!

  15. Azman: From a DODGY deal to a Doggy Deal! If MAS joined OneWorld, MAS will be stronger with 12 airlines backing it. Where is your brain? No need to have a degree to know that a membership into OneWorld will make MAS stronger. SIA and Thai in the region belong to Star Alliance. So it makes sense fro MAS. Why waste time with your collaboration with AirAsia, which is showing sign of problems in its creative accounting.

  16. What the load of shit if AMOK telling PAC. YM tg Azmil and those Board of Directors which step down knew very well that the Share Swap will not save MAS but will create more damage and kill MAS.

    AMOK what “Judgement Call” are you refering to or are you trying to say that you been “Call” for “Judgement” by the Almighty above is getting near. Wonder until when will these crooks going to spin and bullshit around.

    PAC hope you guys will not fall easily to these crooks stories.

  17. YB, I think the parties involved will drag this issue as long as possible with hopes that the people will lose interest. We look to you to keep this going!!

  18. Sng

    “If MAS joined OneWorld, MAS will be stronger with 12 airlines backing it. ”

    Right! I traveled a bit on several airlines from 1995 till 2005 and wondered why other airlines such as Thai & SIA were members of an alliance but not MAS.

    Well, now the door is open to the OneWorld alliance and it should join and benefit from the synergies.

    More Malaysians will then fly MAS and MAS will bring more visitors to Malaysia.

    That said, leakages and inefficiencies should be reduced within MAS but that’s a separate issue.

  19. YB Wee,

    “The facts speak for themselves. Full of publicity games. Their own conception of public interests.”

    Thanks.

  20. I doubt Tg Azmil and Eddy will reveal everything to PAC. Reasons;

    1. Both are now in Khazanah, somehow withdrawing handsome rakyat money and are bound by order from Azman.

    2. Tg Azmil himself was allowing mismanagement in MAS while under his tenure – inheriting from his mentor ‘Idris the Numeric Artist’

    3. Eddy was a consultant for MAS, then absorbed as a staff and given express opportunity in MAS then to lead Firefly. He should say thank you, twice to Naziruddin of Khazanah.

    Khazanah is well suited for CONsultants!

    p/s Minor edition to avoid unnecessary problems.

  21. YB, please post what AJ told PAC. We in mAS really would like to know where he is going or sleeping on his job or just a budak suruhan of the Red Indian Pariah.

  22. Khazanah under Azman Mokthar contaminated with CON-sultant mentality. Ever since Azman took over Khazanah, Khazanah must have spent many hundred of million Ringgit paying all the consulting firms.

    This is the Bina Tak Fikir mentality. YB Please ask Parliament to probe this.

  23. In the picture one can only see “the happy Family” were smiling as though there is no tomorrow. Firefly was tiny little thing over shadowed by the others. As expected, Firefly will be finished in no time. that is the agenda because Firefly was competing in the same market as AirAsia and AirAsia X. can’t wait for Malaysian Anti Competition Commission to come into force on 1-2-2012.

  24. All these commentators appear to have little or no knowledge of how the airline industry operates.

    To paraphrase the words of a former Big Boss of IATA, the airline industry is the only one that operates on razor-thin margins with little room for error.

    If you can’t be profitable, what do you do? Cut off the bleeding or restructure, cut costs and try and get back into profitability?

    If MAS were asked to do an honest accounting, with a proper allocation of direct costs and overheads, just how many of the “national service” domestic routes within Malaysia are profitable?

    Is, say, JB-KL profitable? KL-Penang? JB-KK? KL-Kuching?

    If the domestic routes are not profitable, why should MAS, or any other airline, operate them? It’s not like as if it’s running a charity!

    A Malaysian public who have grown blase with a continued regime of subsidies demands “cheap” water, electricity, road tolls, bus fares and air fares, regardless of commercial realities.

    The government may as well be upfront about it, nationalise MAS and make it a unit of the Civil Aviation Department. That way, it can carry on subsidising to it’s heart’s content.

    It’s just too bad that the Boeing and Airbus aircraft manufacturers of this world are governed by the profit motive and not by woolly-headed sentimentality masquerading as “national service”. As too the fact that Malaysian pilots, flight engineers and aircraft engineers and technicians are internationally mobile and are little motivated by the calls to “national service” when there’s big bucks to be made working for the likes of Emirates and Qatar Airways!.

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