Shah Alam MP Mohd Zin Mohamed has strongly denied allegations that he is party to fraud, corruption and bribery in relation to complaints that his air-cargo company has been under-declaring the weight of shipments ferried by Malaysia Airlines (MAS) over the past two years.

He is now initiating legal action against MAS shareholder and lawyer Jeyapalan Mahesan for defamation, in relation to the latter's action as reported in the New Straits Times of Sept 12.

Reports about the alleged under-declaration have appeared in the media since April.

The Umno politican had earlier told malaysiakini that he was not involved in the operational matters of the Dhaka-based company, Silkways Cargo Services Ltd. Mohd Zin is chairperson of its board of directors.

On Sept 11, Jeyapalan had filed a writ of summons in the Kuala Lumpur High Court seeking a declaration that Silkways and MAS are clear of fraudulent shipments.

The applicant asked the court to determine whether there was a "deliberate and continued non-compliance" with existing cargo shipment procedures.

'Ulterior motive'

Mohd Zin, who is also chairperson of the Backbenchers Club in Parliament, said in a statement today that he has never been involved in such malpractice.

"I strenuously and emphatically deny the false allegations made against me in these reports, that I had been a party to fraud or corruption or that I had paid any briberies to any officials of Malaysia Airlines System Bhd," Mohd Zin said in the statement.

"These allegations are completely not true and wholly unfounded."

He alleged that Jeyapalan was prompted by an "ulterior motive" in issuing press releases and giving media interviews, when he (Mohd Zin) has yet to receive an original copy of the writ.

However, he said that registered mail had been delivered to his house on Sept 19, with an "unsealed copy of alleged court action without the date of filing and court seal".

"Other than what had been reported (in the press), I do not know when this action was filed, what are the allegations against me or the date and court in which this action was filed," Mohd Zin said.

"...In my view, (the action) clearly evidences the fact that the he (Jeyapalan) has initiated this action maliciously for an ulterior motive and to cast aspersions and cause grave injury to my reputation and integrity both as and individual and as a member of Parliament."

The allegations of under-declaration were first highlighted in April after DAP MP Teresa Kok held a series of press conferences in the wake of two police reports lodged by a MAS employee.

These alleged that Silkways had committed fraud by under-declaring the weight of cargo transported by MAS, thereby causing the airline to suffer losses of about RM3.6 million over the past two years.

The police report claimed that Silkways had offered inducements worth RM1.1 million to several MAS officers to enable the company to slip through the under-declared weight.

MP 'disappointed'

MAS launched a internal probe on the matter but concluded that the allegations were unfounded while the Transport and Finance Ministries said the authorities need not conduct an independent inquiry into the allegations.

Yesterday, however, Kok ( photo , left ) again expressed dissatisfaction with the ministries' "ignorance of the allegations of impropriety" against Mohd Zin.

When debating the Budget 2004 proposals in the Dewan Rakyat, she said: "The police have not launched any investigation into the complaints. Is this due to the fact that Silkways is headed by the Backbenchers Club chief?"

Kok said she was disappointed that the allegations were not incorporated in the Auditor-General's Report, since this was "one of the factors that have contributed to the losses sustained by MAS".

"I urge the newly-appointed transport minister (Chan Kong Choy) to show his concern and to prove that he is eligible to assume the responsibilities that come with his post," she added.