Datuk Ibrahim Ahmad Badawi: “We want to work with MAS.”

Datuk Ibrahim bin Ahmad Badawi: “We want to work with MAS”.

On 26-10-2012 Datuk Hj Ibrahim bin Hj Ahmad Badawi, the brother of the former PM (YB Tun Abdullah Badawi) and also the Executive Chairman and majority shareholder of Brahim’s Holding Bhd (Brahim’s Holding) was quoted by the Star to have said: “We want to work with MAS.” For the full Star report read in HERE.

Brahim’s Holding has substantial interest in LSG Skychef Brahim’s Sdn Bhd (LSG Skychef Brahim), formerly known as MAS Catering Sdn Bhd (MAS Catering).

In March 2003 BinaFikir Sdn Bhd, was commissioned to make MAS an asset light airline. BinaFikir coined the name for the project WAU (Widespread Assets Un-bundling). BinaFikir was incorporated in January 2003. It was by chance that En Azman Mokhtar as he then was and En Mohamed Rashdan Yusof, the former MAS Deputy CEO during the infamous MAS-AirAsia share swap,  were the two key figures in BinaFikir. Since its incorporation, BinaFikir was the talked about local consultancy firm in Malaysia and it was awarded with many projects for consultancy work from many GLCs and other government related companies. It continued to fly very high until 2008 when it was sold to Maybank Bhd for RM8 million. BinaFikir was definitely a very viable consultancy firm then.

It was after WAU that MAS entered into a lopsided catering contract with the then MAS Catering, which is now known as LSG Skychef Brahim’s, for 25 years with a total value of RM6.25 billion. It cost MAS a whooping RM250 million a year!

At the material time, MAS sold 70% of its equity in MAS Catering to Gubahan Saujana Sdn Bhd, which was controlled by Datuk Ibrahim bin Hj Ahmad Badawi. Well, these two deals were sealed almost at the same time.  At that material time, Tan Sri Md Nor Yusuf, who is now the Chairman of MAS, was the MD of MAS. YB Tan Sri Nor Mohamed Yacop was the then very powerful Minister of Finance II.

Yours truly believes that many corporate figures throughout the world will never say “NO” to such a lucrative lopsided catering contract with MAS worth RM6.25 billion. Just imagine a stick of satay cost MAS RM3.20! How about the other items?

Yours truly heard that MAS would like to renegotiate the lopsided 25 years catering contract. So far there was no official announcement about the renegotiation of the said lopsided catering contract. If the top management of MAS really wants to turn around, this had to be one of the issues that it had to tackle otherwise it will be an uphill task.

Yours truly has called for the said catering contract to be terminated in HERE.

For background stories regarding LSG Sky Chef Brahim’s Sdn Bhd, in HERE & HERE.

21 thoughts on “Datuk Ibrahim Ahmad Badawi: “We want to work with MAS.”

  1. zzz......zzzzzz

    Of course, I would love to work with MAS for the next 100 years if a stick of satay cost RM3.20 when buy in bulk. Its daylight robbery. Tan Sri Md Nor and AJ, what are you doing about this lope sided catering contract. Any top management would not want to continue with such contract unless they are clueless.

    What is the Slumberjack doing as Advisor of MAS? He should be instructing MAS to stop such contract as it is not in the best interest of MAS. Another gaji buta advisor.

  2. The great pretender

    The top management of MAS got to take drastic actions to break away from the contract if possible. If this a will there is a way. This catering contract bleeds MAS year in year out. If the ordinary MAS crews could see through this catering contract with LSG Skychef Brahim, don’t tell me that the top management was not aware about this.

    Chairman Tan Sri Md Nor should be very clear about this catering contract when he was the MD of MAS in 2004 and he has a duty to undo it now. Stop pretending.

  3. mohd. natar

    …Thank you WCK. This is the very first time I use my little time to fully read your article in your blog. Initially I wanted to read only the first few lines of your writing but I have to admit that I could not stop until the end. Thank you again for sharing what you know about MAS in particular and the whole happenings in general. After reading about what you have enlightened on the MAS catering contracts and the related issues it strike my mind to wonder why MAS was in the red all these while which, I think, it shouldn’t be. I believe that this is only one issue and just the tip on an ice-berg. There could be many more issues and contracts entered by MAS which are lope-sided (as you said) and bring heavy damage to our national airlines…

  4. The Pumkiner

    Kalau cuma ambil buah sahaja, biasalah tu.

    Tapi golongan mereka tu, bukan ambil buah sahaja, daun, dahan, banir pun mereka angkut juga.

    Kalau boleh ambil akar, akar pun kena sapu!

  5. MAS steward

    Tan Sri Md Nor was the MD that signed the lope sided 25 years catering contract. He should undo this now. The contract is a burden to MAS until this day and for another 15 years. This bloody culprit is not fit to be the chairman of MAS.

      1. Samseng subang

        Md nor, not only clueless but also a cr**k like his boss, nor yaakop! Cakap lembut lembut tapi hati manyak kotok! Ptuiii ptuii!

  6. The Gooberman

    I am curious.

    Was the MAS catering contract put up for public tender?

    If it was, how many companies submitted bids?

    If there was no public tender, was it a “directed award”?

    At Singapore’s Changi Airport, there is no sole catering contractor monopoly.

    The 2 catering contractors at Changi – SATS and CIAS – compete aggressively for business among the airlines operating at the airport.

    SATS was spun off from SIA. It’s a public-listed company in it’s own right and has retained the SIA catering contract up to now.

    CIAS is part of the giant Dubai-based Dnata Group.

    I believe that competition is good for efficiency and cost control, and it gives consumers real choices.

    Is MAHB doing anything to get more companies in to service the airlines operating at KLIA and the other international airports in the country?

    Maybe Khazanah should acquire a stake in SATS from it’s major shareholder, Temasek Holdings, and bring it into the Malaysian aviation market.

  7. The Brainless

    A stick of satay cost RM3.20! how about the other items? Tan Sri Md Nor and AJ, please use your brain to think for the movement. How is MAS going to turn around with such burden yearly for the next 15 years!

    Stop talking about other nonsense and get on with the job to terminate this lope sided contract now. If Md Nor and AJ are sincere, this must be their priority when MAS is bleeding.

  8. Syari

    The shameless Slumberjack is still sleeping there. Drawing salary of RM30k monthly shamelessly.

    AJ just terminate the catering agreement as a first step to stop the MAS from suffering from this lope sided agreement. Just do it and you will get the support of the staffs without wasting your time in getting the useless survey.

    1. proud to be a small part of MAS..

      Muahahaaaa…. seriously, who in the right frame of mind from LSG would allow the termination of the contract between LSG and MAS? This contract is MINTED IN GOLD for 25 years!
      Monopolies is a fact of life in Bolehland… from the freaking Cow Supplier (NFC) to the Schoolbooks supplier (RH), from Sat/Cable TV (Assthrown) to Airport Taxis and Limos…. ALL MONOPOLISED by “con-nected” people. This is what is so blatantly wrong with this country, ALL MONOPOLISED! – everyone wants to get rich, at the expense of everyone else!!
      And the best part of it – today in MAS, all this “wayang” is seen and heard by the employees, EVERY MISERABLE day and CANNOT SAY or DO anything!

      They (this insulated management) would tell you in the in your face – NOT HAPPY? THEN RESIGN ! !

      1. mohd. natar

        I totally agree with you. It is high time for this kind of culture to be of history. Those people known to be involved in this ‘you-know-who’ blunders should be given a big kick on the butts. What are our authorities and agencies doing all these while?…

    2. proud to be a small part of MAS..

      Syari… are you referring to AAB as SlumberJack? I think it is more than Selamba-Jack? So what is it with Selamba Jack 30k/per month salary? The others (IFS, SVP and VP) are making more moneys with wearing double hats.

  9. mohd. natar

    Syari, just to share your views. How can the government be so blinded and (sorry to say) stupid over this senseless contract?. Get rid of these kind of people. Be it the brother of a former PM or not. If what you do is hazardous to the country (and the people) then you should not be there anymore. Isn’t it right?. WCK your comments please…

  10. Kirsten

    Dear YB,

    Thank you for all the brilliant entries and in highlighting all these issues that otherwise would not see the light of day. Keep up the good fight!

    p.s. it’s “Lopsided” not “lope sided”. Sorry, but I’m a grammar Nazi.

  11. blue sky

    Brahim, Dollah, Matnor,
    If you are god fearing you will terminate this contract.
    No amount of Haj or Umrah can exonerate you. You have to apologise to each and every staff of MAS.

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