Prime Minister Najib Abdul Razak has been urged to explain why no action was taken against former Malaysian Airlines (MAS) chairperson Tajuddin Ramli over a reported RM8 billion in losses suffered by the company during his tenure.

NONE During a press conference at the Islamic party’s headquarters in Kuala Lumpur today, PAS vice-president Salahuddin Ayub ( right ) said no action was taken despite numerous reports made to the authorities. 

"Why was no action taken? Was Tajuddin acting alone or is he being protected by someone?" asked Salahuddin, who is also Kubang Kerian MP.

He disclosed that two police reports have been lodged in 2002 and 2005 by the national airline over the matter and another report lodged with the Malaysian Anti-Corruption Commission (MACC) in May 2009.

NONE Salahuddin also claimed that as a result of investigations triggered by the police reports, a letter was sent by former Commercial Crime Investigation Department director Ramli Yusoff ( left ) in 2007, which recommended to then premier Abdullah Ahmad Badawi that Tajuddin and company officers Wan Aishah Wan Ahmad and Ralph Gotz  be charged for the allegations.

According to the letter, copies of which were distributed to reporters, the former CCID director had recommended that Tajuddin and Wan Aishah charged under section 131(1) and 131(2) of the Companies Act for failing to disclose their interests and making false declarations.

He also recommended that Tajuddin and the rest be hauled up under section 418 and section 120A of the Penal Code “for cheating and conspiracy to cheat” for alleged improprieties in the cargo handling contract between MAS and Advanced Cargo Logistics GmbH (ACL) in Germany.

‘Sufficient evidence to prosecute’

According to the letter further, Tajuddin actually controlled ACL through nominees and close relationship with ACL directors, and used his position in MAS to secure the deal for ACL to the detriment of MAS.

NONE Ramli recommended that Tajuddin ( right ) be charged under section 15(2) of the Anti Corruption Act for misusing his position as MAS chairperson to benefit ACL, a company he effectively controlled.

“CCID’s investigation has disclosed that there are sufficient evidence to prosecute Tajuddin, Wan Aishah and Gotz, for the above offenses,” wrote Ramli in the letter.

   

Salahuddin pointed out that despite the recommendation, no action was taken by the government against Tajuddin or others.

The parliamentarian added that he himself had written to Public Accounts Committee chairperson Azmi Khalid on the matter in December 2009 but has not heard or seen any action from the committee to date.

"The PM should take this case seriously or risk ridiculing Malaysia in the eyes of the world. "

"He should put his foot down if he is committed to his own NKRAs in fighting corruption," he said.

‘MACC must explain’

Salahuddin related that he received the documents containing the above information attached to a letter from a legal firm representing the national carrier, addressed to the MACC and expressing the attorneys’ and the airline’s disappointment with the commission for disclosing the details of their report to the anti-graft body last year to the Bukit Aman CCID.

In the May 2009 report the national carrier expressed its concern that there may be elements of bribery and misuse of power involving the CCID and the Attorney-General’s Chambers in deferring action against Tajuddin.

“Your actions contravened provision of section 29(4) and 65(2) of the MACC Act 2009 because Bukit Aman CCID was one of the parties the complaint was directed against and they were not supposed to be given details of our client’s complaint,” said the legal letter.

Salahuddin urged the MACC to answer why it disclosed details of the complaint to the CCID.

“This has caused MAS and the officers who lodged the report to feel ‘alarmed’. They want the anti-graft body’s assurance that there will be no acts of retaliation against them.”

The letter and documentation, he explained, were also copied to members of the MACC Advisory Council and the Special Committee on Corruption, of which he is a member. He later distributed copies of the letter and pertinent documentation to the press.

Salahuddin vowed to continue to pursue the matter in Parliament and will lodge a new police or MACC report if necessary. He will also contact the Special Committee on Corruption chairman Radhi Sheikh Ahmad to convene the committee to discuss the issue, failing which he himself will approach the commission.

“A case of this magnitude needs to be addressed. At RM8 billion, it is another PKFZ in the making,” concluded the PAS parliamentarian.