AJ & Rashdan: “What cost cutting?” Part 6 – PlaneConsult fees RM2.8 mil!

Mr Connors McCarthy, the co-founder of AirAsia and Chairman/MD of PlaneConsult - the glaring evidence of CONFLICT of INTEREST

Updates @ 7:00 pm 9-4-2012: Parliament will only end at 10:30 pm tonight. YB Datuk Bung Moktar, MP for Kinabatangan told yours truly at 4:05 pm that he said “The Briefing of MP by MAS on 26-3-2012, he said that if the turning around Business Plan is genuine then he will salute AJ and the others and that he strongly opposed the CCF and the way it was implemented by the TRIO. He also asked for another briefing for AJ to bring along Tan Sri Tony Fernandes to brief the MPs. He hopes that AJ will organise a anther briefing as soon as possible”  YB Datuk Bung Moktar has asked yours truly to inform MAS staffs and put on record accordingly. Thus this updates.

A new posting will be posted later tonight regarding what had happened in Parliament where several MPs have spoken up against the CCF, the procurement contract between MAS and LSG Sky Chef Brahim Sdn Bhd, ex and present DCA Inspectors doing part time piloting work for AA without APTL License or with Honorary APTL License,  En Azhari position without Nominated Post Holder and etc. Yours truly held a press conference regarding the conflict of interest on the part of PlaneConsult, Mr Shane Nollan and Connor McCarthy. Stay tune.  

En Ahmad Jauhari Yahya (AJ) and En Mohammed Rashdan Yusof aka Danny (Rashdan) have jointly appointed PlaneConsult as the consultant of MAS effective from 16-1-2012 to 30-4-2012.  Please read in HERE.

If a due diligence has been carried before the appointment of PlaneConsult, both of them ought to have known the glaring facts below:

  • PlaneConsult is the consultant mainly for low cost airlines;

  • PlaneConsult is the consultant for AirAsia Bhd and AirAsia X Sdn Bhd; 

  • Mr Shane Nollan is an employee of PlaneConsult; and

  • Mr Connor McCarthy is the Chairman/MD of PlaneConsult and he is also a co-founder and director of AirAsia Bhd. 

The above glaring facts were enough for any manager of modicum intelligence to know that PlaneConsult was definitely not a suitable consultant for MAS, as MAS is a premier airline.  The above glaring facts pointing to PlaneConsult would not be able to provide independent viewpoints due to its position of the conflict of interests.

Both AJ and Rashdan, the known Tan Sri Azman Mokhtar (Amok)‘s crony and ex-business partner in BinaFikir Sdn Bhd, DEFIED all logic and management standards with the appointment of  PlaneConsult as consultant that cost MAS more than RM2.5 million.  Was the said appointment one of the agendas to facilitate the quick implementations of the notorious CCF?  To date we have not seen any positive results coming out of MAS ever since the said appointment except that AJ came out with three organisational structures within eight months as the MD of MAS. This is the greatest achievement of AJ in MAS!

The appointment of PlaneConsult and Mr Shame Nollan of PlaneConsult, as the MAS Acting Commercial Director, have clearly shown that AJ and Amok’s crony, Rashdan, do not have the basic understanding of such “CONFLICTS OF INTEREST” that are contrary to good corporate governance. It was highly inappropriate for a company to appoint an employee of a consultant firm to such a position with full executive powers.

 Under the circumstances, perhaps both of them should have also appointed Mr Connor McCarthy as the Acting CFO of MAS instead of En Rozman Omar, ex-AirAsia. Then it would been a more complete exercise under the notorious CCF!

Yours truly has been asking the Ministry of Finance and MAS top management what is the all in monthly salary for this Mr Shane Nollan but all kept silence. Yours truly heard from reliable sources that it cost MAS more than RM100,000 a month to maintain this Irish man! It is hoped that this is not true.

Mr Shane Nollan, the Acting Commercial Director, is tainted with conflicts of interest as can be seen from the recent  uplifting of the AA X Sdn Bhd‘s passengers due to the termination of its routes to London, Paris and India in HERE, HERE, HERE and the claims for expenses by PlaneConsult to MAS.    

Let us look at the professional fees and all the charges that PlaneConsult is now claiming from MAS below. From these charges, we will be able to see that Mr Shane Nollan has compromised his position as a full time Acting Commercial Director of MAS and a staff of PlaneConsult.

Below are all the PlaneConsult’s claims for their professional charges and expenses:       

Claim for Professional fees in March 2012:

  1. Engineering & Maintenance      Euro135,000

  2. Airline Engineering Group           Euro54,000

  3. Commercial                                   Euro204,000

  4. Network Planning / Schedule       Euro48,000

  5. Fleet Planning                                 Euro30,000

  6. Operations                                      Euro180,000

         Total                                                  Euro651,000

Claims for Expenses in February 2012:


Include: Costs of flight from Ireland to Heathrow, taxi fares in UK & Malaysia, Tune Talk mobile top up & etc   Euro 6,560.26

Under this claim includes Mr Shane Nollan’s expenses.

 

Claims for Expenses in March 2012

Include: Cost of taxi fare, Rail card & top-up, Tune Talk top-up, costs of flights in UK, petrol, car park & etc    Euro 10, 691.38

Under this claim includes Mr Shane Nollan’s expenses.

 

Claims in March 2012

For services provided by “INSPIRED MINDS” for Airport Operations Manpower Planning offsite MAS on 6, 7, 9, 15, 16, 17, 28 & 29 Feb 2, 3, 7 & 21 March 2012 – Onsite MAS on 20 & 24 March    Total:   Euro 4,917.00

No one in MAS seem to know who are the “INSPIRED MINDS” and what have they don’t for MAS on those dates? One would thought that PlaneConsult should be doing all the works.  Who are the “Inspired Minds”? Can anyone help with more information on this?

 

Claims in April 2012

“MAS implementation support – March 2012 “INTEREST CHARGES”.  PlaneConsult sounded like an Irish BANK!

MAS Fleet & Engineering Review – Andy Holmes              Euro10

MAS Fleet & Engineering Review Mr Connor McCarthy Eruo564

MAS implementation Support Q1 Jan 2012                 Euro 4,340

MAS implementation Support Q1 Feb 2012                 Euro 4,340

                                               Total:                                            Euro 9, 254

As at this date, the total consultancy fees inclusive of expenses is Euro682, 422.64 (equivalent to RM2.8 million) excluding the cost of air fares from London to KLIA.

All the above five claims were sent to MAS for the attention of Rashdan, the Amok’s crony.

 

The above expenses sounded like the AirAsia’s hidden charges [Manual check-in fees, Online booking fees, Convenience fees, Telephone Call fees (for non Toll Free calls), Baggage size fees and etc] in HERE.  These hidden charges are now points of contention in the Court in Australia instituted by ACCC in HERE.

If you were to go to the website of PlaneConsult you will no doubt see the picture of Mr Connor McCarthy and four categories, Introduction, Airport, Airlines and Regulatory Bodies with very little detail in HERE

Yours truly has been reliably informed that in the documents presented by PlaneConsult to AJ and Amok’s crony Rahsdan showed that PlaneConsult’s clients include: AirOne, Aerlingus, Qantas, AirAsia, Alitalia, Deccan, Aero, Spanair, Copa Airlines, Jet, Easy Jet, AsiaAsia X, Vivaaerobus and Pluna. Yours truly would have thought that such big IATA clients like QANTAS, ALITALIA and COPA AIRLINES deserve some mentioning in the website of PlaneConsult.  But none of the said airlines names are stated in the PlaneConsult’s websute.

Is PlaneConsult shy about their great aviation consultancy achievements that worthy of more than RM2.8 million to MAS? Can someone help with the details of the consultancy work that PlaneConsult did for the said three big IATA airlines?

Yours truly calls upon the Ministry of Finance to immediately institute a thorough investigation into the followings:

  • how was the appointment of PlaneConsult made i.e was there a due diligence carried out before the said appointment;

  • the CONFLICT OF INTEREST on the part of Mr Shane Nollan and PlaneConsult;

  • the credentials of PlaneConsult as presented to AJ and Amok’s crony Rashdan; 

  • all decisions made by the said Mr Shane Nollan as MAS Acting Commercial Director including the uplifting of AA X Sdn Bhd’s passengers by MAS; and

  • all recommendations made by PlaneConsult to MAS whether they were made in the best interests of MAS.

Khazanah is not fit to carry out the above investigations as the issue of “Conflict of Interest” may also be a point of major contention due to the glaring facts that Amok, being the MD of Khazanah, has a very close relationship with Rashdan. They were also ex-business partners in BinaFikir Sdn Bhd.

In the interim, yours truly hopes that the TRIO will come clean to clarify the questions posted above. Silence is no longer an option because MAS involved public fund and Malaysians have the right to know.

Yours truly has been reliably informed that the top management team of MAS was on a “Special Retreat” some where serene during this weekend presumably  to brain storm how to “turn around” MAS. It is hoped that it was not a futile exercise of “Damage Control” as it will be a waste of public fund when MAS is BLEEDING!

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