MAS TRIO’s briefing “ACCURACY IS NOT GUARANTEED!”

On 29 February 2012 En Ahmad Jauhari Yahya,(AJ) , En Mohammed Rashdan Yusof aka Danny (Rashdan), Tan Sri Azman Mokhtar’s ex-businesss partner in BinaFikir Sdn Bhd and crony,  and En Rozman Omar (Rozman), the newly crowned CFO of MAS and ex high ranking officer of AirAsia, briefed the media of the performance of MAS for the 4th Quarter and FY 2011. They have produced figures based on the UNAUDITED ACCOUNTS of MAS to the media that showed MAS has suffered huge losses to the tune of RM2.524 billion. The said losses must have shaken the Government and nation. Why was there a desperate need to make such a sudden briefing/announcement at this particular time? It was done some 12 days before the commencement of Parliament on 12-3-2012. What a coincidence!

Of course, they didn’t strongly emphasise that the figures quoted derived from the unaudited accounts and the above Disclaimer. Yours truly has the privilege of receiving the presentation slide  entitled: “Malaysia Airlines,  4th Quarter & FY2011 Financial Results, MH Pulse Financial Briefing” by AJ (Group CEO), Rashdan (Deputy Group CEO) and Rozman (Group CFO), the famous TRIO.

The TRIO took great PRIDE in telling the world that how “sick” was MAS. Perhaps the TRIO was hoping that they could garner the support of the nation for them and, most of all, TO JUSTIFY what they have senseless done until now and charted to do in the future! Read HERE.  Perhaps to also justify the secret MAS – AirAsia share swap, CCF and the exercise of 10% option to purchase AirAsia X Sdn Bhd by Khaznah Nasional Bhd, which is headed by Tan Sri Asman Mokhtar, the ex-business partner of Rashdan in BinaFikir Sdn Bhd.   Hence, the TRIO thought it fit to mislead the Government and nation with the items and figures quoted as part of the losses. The said “briefing” was seen as a “propaganda exercise” in futility and a waste of public fund!  Below are the said items that formed part of the huge losses:

  •   Fuel cost increased by 25% (RM305m)

  •   Non-fuel cost increased 50% mainly due to additional provisions:

                 – Redelivery of aircraft RM602m

                – Impairment of freighters RM314m

                – Stock obsolescence RM179m

  •   Unrealised forex translation gains RM22m, Derivative gains RM28m

The above so-called losses totaled RM1.277 billion!  You don’t have to be a genius  to know that the above items cannot be treated as part of MAS losses.  Which accountants or consultants did the TRIO use that thought them such creative accounting?

If those items and figures were produced by Rashdan, who was Tan Sri Azman Mokhtar ex-business partner in BinaFikir Sdn Bhd, yours truly could understand because Rashdan together with Tan Sri Azman Mokhtar were both in BinaFikir Sdn Bhd and were two of the chief architects that were responsible for the project WAU in 2002 that has made “MAS an asset light airlines”. MAS has became lighter after the disposal of  70% of its share in MAS Catering Sdn Bhd to Gubahan Saujana Sdn Bhd, a company controlled by former PM Tun Abdullah bin Hj ahmad Badawi’s brother, Datuk Hj Ibrahim bin Hj Ahmad Badawi.  Soon thereafter, MAS signed a one sided catering agreement for 25 years with MAS Catering Sdn Bhd, which name has since been changed to LSG Sky Chef – Brahim Sdn Bhd. No wonder Rashdan was seen to be talking about disposing “non-core assets” of MAS. Read HERE.

Yours truly hopes that Rashdan is not thinking of MAS Engineering, MasKargo and MAS Academy as “non-core assets”.   AJ, you are a real fast learner!

The above DISCLAIMER was a part of the slide show for said briefing. Please examine the “Disclaimer” properly. The TRIO let the cat out of the bag by the said DISCLAIMER. It clearly stated that “… it may not contain all materials of the Company and its ACCURACY IS NOT GUARANTEED“. “Neither Malaysian Airlines System Berhad (“MAS” or “the Company”) nor its affiliates, directors, shareholders, its employees, agents and advisors make any representation regarding and assume responsibility or liability and assume no responsibility or liabilities for the accuracy and completeness of or any error or omission of information compiled herein.”  “No assurance can be given that future events would occur and the company’s assumption is correct and projections can be achieved.” The said briefing by the TRIO had already been discredited by their sole reliance on the unaudited accounts. The DISCLAIMER has made it to be of ZERO value!  

How could the TRIO holding such high posts of Group CEO, Group Deputy CEO and Group CFO of MAS, spending MAS fund in the appointment of so many expatriate consultants and preparation of the said briefing and at the same time the TRIO chose to disclaim all responsibility or liabilities for the accuracy and completeness of the information presented to the nation?  The TRIO depicts a half baked management who has no clue as to what are their role as top managers of MAS. What a joke!

With such so-called briefing based on unaudited accounts and coupled with a DISCLAIMER, it would appear that MAS does need the TRIO after all because they have made strong negative statements about MAS and the same time the TRIO disclaimed “responsibility, liability and the accuracy” of what they have presented in the said briefing on 29-2-2012.  The TRIO  have now joined the “Panamera Deadwood Department” due to their  sole qualifications of drawing huge salaries and perks, making senseless decisions for MAS and contributing to the “LEAKAGES” in MAS.  During such difficult period for the aviation industry, MAS does not need such characters to ensure that our national airlines MAS will be grounded sooner than expected.

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25 thoughts on “MAS TRIO’s briefing “ACCURACY IS NOT GUARANTEED!”

  1. bash

    if najib keeps on being silent on the recent corporates manouvres, my vote is going to ….dont know who. nobody seems to leading the country. everybody seems to be riding the gravy train…

    Reply
  2. Anonymous

    This is must certainly be a first for a CEO and the Snr Officers of a Company who will not take responsibility and liability over their own public and formal disclosure.

    If this is allowed, then the briefing has a value of no more than empty talks at a kopitiam.

    Or alternatively, the collective value of CEO and the Snr Officers of a big corporation like MAS, is no more than the man on the street.

    Reply
  3. Johnny Lim

    Never knew that in accounting you can have disclaimer to say the accuracy is not guaranteed. I thought that in accounting term accuracy to the nearest sSen is vital otherwise no one will believe the accounting record of the company.

    Never knew that MAS under this new management has no direction. They are playing with figures. The new management of MAS is also into creative accounting. MAS is now a laughing stock.

    Reply
    1. Accountant

      Johnny Lim, u must hv been conned by n accountant! Accounting , just like Law, is not rocket science so it can never be precise n lot of room to window dress is available. More so with ever confusing new accounting standards, it has even clouded the matter and made it sure that a layman wld never understand a financial statement!

      Reply
  4. Recalcitrant

    YB
    Thank you for picking up the disclaimer which was noted by all staff during the briefing. Also, since you have the presentation slides, please also publish the other statement (in RED, page 12) about the support from the 2 major shareholders, ie Khazanah and Tune AND endorsed by the Board for the “immediate action plans” for funding they want to put in place. Even a fool saw through the inflated figures (hoping it will cause real alarm amongst staff) which are now used as a blank cheque for them to bulldoze through their “immediate” action plans.
    Back to the provisions, since I am no accountant, can someone tell us what FRS12 rules say about provisioning future expenses retrospectively?
    Let us look at the 3 major provisions.
    1. Re delivery of aircraft. Out of the planned redelivery of 69 aircraft (various
    fleet) only 5 were redelivered in 2011! The redelivery plan has 36 for 2012;
    20 for 2013; 8 for 2014. So, the redelivery costs in 2011 is just 7% of the
    total estimated costs but all provisioned to 2011??
    2. Stock obsolescence – these are spares for the aircraft to be ‘redelivered’,
    surely we must get the value when these spares are sold first before
    proclaiming the whole lot as “obsolete”?.
    3. Impairment of MasKargo freighters – creative exercise to de-value a
    profitable business unit to justify “divestment” again. Note the
    analysts are also puzzled about the selling of MasKargo which contributes
    to 15% of the group revenue and the categorization of MasKargo as
    “non-core”.

    There is also a previous posting about WAU2 which includes the bundling of
    other properties, which “justifies” the forced migration of staff from Subang
    to KLIA, a move said to cost RM30 million, a big sum for a “cash-strapped”
    Company, no?
    Back to the “divestment” of alleged non-core units, an estimated 11,400 staff
    will be impacted by this. Taking the example of the soon-to-be-launched
    Short Haul unit (SH), staff employed by the SH will do so under NEW Terms and Conditions. Effectively, one has to RESIGN to assume position in the SH.
    This, despite claims from AJ, that staff will be “REDEPLOYED”. To date, the
    redeployment plan is yet to be seen, but recruitment for the SH is in full swing. What does this mean? At the end of the day, there will be staff “in excess”.
    In case “excess staff” think that there will be redundancy (or severance)
    payouts, do not dream. They will be lucky if they even get a 3 mohth’s package. Too bad.
    Keep up the good work YB.

    Reply
    1. Anonymous

      Recalcitrant,

      I agree with you on your statements, I would like to fiurther add to your statement on Item 2 – Stock obsolescence.

      How could they declare lock, stock and barrel obsolete in 2011 when the spares will continue to be used until 2014.

      In any case, by writing off the value of the aircraft spares in 2011, any proceeds from sale of these “obsolete” spares can be written back into the books as extraordinary income for the forthcoming year. There are still many B747s and B737s flying around the world and the demand for their spare parts are still high. Without actively looking for buyers for these spares, a company can get 70-80cents to the dollar easily.

      I feel that this is nothing that to create the opportunity for the new management to make up for any shortfall or make them look good for the forthcoming year.

      Reply
      1. Metamorphic

        Personally I believe IF these were to take place in China, the 3 JOKERS (& their koncos in Khazanah) would have been shot in public!! Alas, in our Bolehland with a “Boleh” PM, everything is possible…sickening la!

  5. Time Traveller

    Just to clarify your statement YB – “Why was there a desperate need to make such a sudden briefing/announcement at this particular time?”

    All public listed co must make an annoucement of their financial result within 2 months from the end of each quarter. Hence, for the quarter ended 31/12/11, an announcement has to be made on or before 29/2/12. So that was why the briefing was made on that day. It’s just to meet the stock exchange requirement.

    Reply
    1. weechookeong Post author

      Time Traveller

      Thank you so much for the valuable information. I am most grateful to you and others for all the contributions and support for my blog.

      Thank you

      With kindest regards

      Wee choo keong.

      Reply
      1. Anonymous

        Dear YB
        Please raise all those Q in Parliament.I think you are the only YB that really concern about MAS.We need to know the transparency of the deals and plans by MAS AirAsia and whoever involved.
        Met you 2yrs ago onboard.:)
        Thank you again and may you win the coming elections again.

  6. Anonymous

    Dear Yb,,
    Met you once onboard 2yrs ago.
    Hope you can put all those Q in the Parliament…We know you the only MP who goes all out about MAS.thank you for that.We need your support,please do save our national carrier from those bunch.We ,the rakyat need them to be transparency about all their deals or planning.

    Reply
  7. Little Bird

    YB,

    The disclaimer is a standard format for many companies’ presentations to investors and the public. You can see in most Bursa-listed companies’ documentation and circulars. It’s not for MAS only.

    Be that as it may, its the CONTENT and their basis that needs to be scrutinised and no matter what, the disclaimer cannot be the all-encompassing “shield” for the management to hide behind when things don’t come out right. They still have a duty to make sure their disclosures are accurate.

    Reply
  8. Anak Malaysia

    The “TRIO” are really idiots and the pariah TF put Rosman there to manupilate with the financial report. Have anyone of you notice that the financial report came out 1 week later than it supposed to be. WHY???? because those not so smart croonies of pariah TF, will have to make sure that the financial report shows more -ve numbers than +ve.

    The livery of MAS and colours had been changed and even the direction of the logo been changed too. WHY?????? The MAS website now look so pale and sad as though that all MAS staffs are death and the Website mourning.
    What happened to the RED/BLUE corporate colour of MAS??? Don’t tell me just because the Pariah TF uses RED, MAS can’t have RED in their logo. Hey, Pariah TF and his stupid croonies, listen up, by changing the colour and logo direction will not help MAS to recover and be in the RED but it will make MAS looses even more and continue to in the BLACK till God knows when.

    Hey Pariah TF and croonies, don’t steal, rob and rape anymore from MAS. YB, appreciate if you could bring all these up in the Parliment.

    1. How much will it cost MAS to repaint all their existing aircrafts to the new livery and logo?

    2. What the story behind the change of colour/logo direction?

    3. If MAS is bleeding so much, don’t you croonies think that it’s not so smart to change colour/logo direction now?

    4. Which not so smart croonies idea is it to change the colour/logo direction or maybe it the Bina Tak Fikir idiots/consultants who are doing it?

    Can’t wait to see all you Panamera Deadwood/Idiots get whack from YB in the Parliment.

    Reply
  9. Time Traveller

    Yes Recalcitrant, those who want to join the Short Haul (SH) airline would have to resign from MAS. Then join under new T&C and no union. But I heard pilots from MAS who go to SH will only be on secondment basis. No need to resign from MAS. Why the different treatment? Why the double standard by the management? Are they afraid of losing the pilots? Cos they know they will have problems recruiting pilots from other countries – higher pay, work permit etc. MAS local pilots are amongst the lowest paid in the region. Etihad, Emirates and Qatar pay double and tax-free. So many double standard in MAS. New management also the same. We all have been fooled by them.

    Reply
  10. Johan Khazanah

    That was bullshit accounting. This must be the work of that bloody Azman’s crony. That was what they both did under WAU. Now the crony was trying again. Even Maybank can’t stand him that’s why he was thrown out from Maybank. His master Aman of course took him back and put him as director of investment in Khazanah. within a short span of time, he now head mAS to disaster.

    All decisions were cosmetic with no substance. Selling assets to show profit. Under WAU MAS sold MAS catering. YB you are right. Now this Con-sultant is trying to sell “non-core assets of MAS. He is an idiot.

    Reply
    1. Accountant

      I also wondered why Rashdan quit Maybank so fast despite Maybank paying a premium to acquire that Bina Tak Fikir company including Rashdan! So much of swindling!

      Reply
  11. Anonymous

    It’s rumoured that the MAS training dept. is going to sell their 9 simulators to CAE, AirAsia’s only selling 3, BUT profit from the simulator going to split 40% to AirAsia and 10% to MAS, rest goes to CAE. Now why you anyone wanted to do that unless they’re cronies.

    Reply
  12. Pak Pandir

    Recalcitrant
    Just a slight correction on the rules governing “provisions”. You quoted the UK
    rule FRS12. In Malaysia, the same rule is FRS137. Basically both refer to the
    same thing, ie what is allowable as “provisions”. But thank you for the insight.
    I wonder which Audit Firm in town will sign off this laughable financial report.

    Anak Malaysia
    You are right about the colour scheme of the new livery. But, is it not interesting, that at 4p.m. yesterday, the “new” logo was used on the Malaysia Airlines website and the internal intranet MhPulse, and of course today many newspapers carried the A380 ads, including one newspaper in London (this morning). But by today, please go to the website, it’s back to the “old” red/blue
    logo again!! Some sources say the “new” logo did not clear the Number One , some said that there were some “glitches” and now it’s back to the drawing board. If that is the case, sack the Consultant! An insider said that on Wednesday evening, when told of some of the “glitches” , AJ said, it’s ok, we just use the “new” logo and livery for the A380 fleet! Wow, 2 logos for one Company. Must be a reflection of the JOINT COMMAND he has with Danny!
    Hasn’t he heard of BRANDING and Corporate IDENTITY?
    Staff were told by the new Marketing guy that the ad campaigns cost 1.25% of the target revenue. With a 12% reduction in capacity, the target should be RM10.8 billion, that means the advertising and promo campaign for the “new”
    brand should cost RM135million! This, btw, does NOT include the repainting of aircraft, new uniforms etc etc.

    Time Traveller
    It’s not different treatment or double standards by management when it comes to the pilots. Management, if they had their way, will treat the pilots equally harshly (like the Cabin Crew – the world’s best – I’ll come back to that shortly), if not for the tenacity of their association ,MAPA , in upholding their members rights. As for Cabin Crew, I think you better check with their union, which btw has concluded the CA with the Company, at a hastily arranged “signing ceremony” in the absence of the Maseu President. Just goes to show the kind of thuggery HC is resorting to these days. But, we forget, the “world’s best cabin crew” may not remain the best-in-the-world for long , if the harsh decisions made are pushed down their throats. That, or they may leave (as many have done post CCF) to other airlines, who will value their worth.

    The MAS circus continues.

    Reply
  13. Green

    Yb,

    I have been following your blog since the collaboration.
    And I must say that you have good points and the gov should take a deeper look on what is going on with the nation’s airlines.

    However, on this post, I must say that this is a standard disclaimer.
    Do take a look at Air Asia’s disclaimer on their presentation.
    It is very similar to MAS’.

    Nevertheless, the trio must strive and make sure that their disclosures are accurate.- despite having a standard disclaimer as such.

    Air Asia’s presentation slide : http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AA_4Q11_Analyst_Presentation.pdf

    Reply
  14. Bina Dengan Otak

    This Bina Tak Fikir Rashdan must be thrown out of MAS as soon as possible. That in itself will e a big help to MAS but no good for the pariah and AirAsia.

    Alternatively throw out another Bina Tak Fikir Azman from Khazanah then at least half of the problems in MAS will be immediately solve because once he is out his crony will be a dead dug or deadwood with no one to back him. He will be out like when he was in Maybank.

    Reply
  15. Kunyit Hidup

    Najib will instruct share swap reversal and Qantas say NO to TF plan on premium carrier?!!!

    Subsequently, good bye Trio……

    If so, what will be the future of AA/AAX staff in the next few years?

    Reply
  16. MAS observer

    The way AJ,Rashdan the crony boy and Rozman the ex-AirAsia boy presented the items and figures for the losses totaling RM1.277 billion showed that they were playing with the figure for the losses. The intention was clear that they want to show as much losses as possible.

    This was to justify that Bina Tak Fikir idiot have done so far like sponsoring RM18m of the Pariah’s QPR, cancellations of flight, cutting of routes and others. To also paint a picture that AirAsia is a damn good and managed airlines.

    PM must sack the TRIO including Azman Mokhtar, the chief engineer of all the problems in MAS. If Azman had supervised properly after June 2004 when he was handpicked by the Sleepy Head and his laughable WAU, MAS wouldn’t have been in such state.

    Reply
    1. Accountant

      They relied on paper change n got MAS into a deeper mess. They continue to use paper change without making real operational change to improve cauz the same culprits r also involved big time in this exercise!

      Reply
  17. mamat

    should someone just request for a court order to stop the activities of scrapping MAS to the bottom. Use the excuse of taxpayers money.

    Reply

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