In an unexpected twist to the Tajudin Ramli saga, Malaysiakini has learnt that the government's investment arm Khazanah Nasional Bhd has summoned all government linked companies involved for a pow-wow early next week.

Sources indicated the meeting has been called by Khazanah Nasional legal head Md Nasri Sallehuddin.

tajudin ramli Among the GLCs which have ongoing suits against Tajudin ( left ) are Danaharta, Malaysia Airlines, Telekom Malaysia Bhd, Celcom and CIMB.

Although the purpose of the meeting is not immediately known, speculation is rife that it is towards directing the GLCs concerned to 'toe the line' following the letter issued by Minister in the Prime Minister's Department, Nazri Aziz, on Monday.

In it, Nazri ‘advised' the GLCs to think seriously of out of court settlements with regards to their suits against Tajudin, once the executive chairperson of the national carrier Malaysia Airlines.

Some quarters are guessing that the meeting is to exert pressure on the GLCs to do just that.

But there are others who are worried that what this might do to Malaysia's already battered reputation regarding corporate transparency and governance.

There are also concerns about the rights of the minority shareholders in the GLCs. The board of directors are still liable to answer for their actions if they decide to withdraw the multi-million ringgit lawsuits.

NONE Indeed Bar Council chairperson Lim Chee Wee ( right ) yesterday said the GLCs board of directors can be subjected to negligence and legal suits by shareholders if found to have failed in discharging their duties.

He said the board, in determining whether to discontinue legal proceedings against Tajudin, must take into account whether such a decision is in the company's best interests.

"If they fail in their duties, these directors will be exposed to suits for negligence by any shareholder or the next set of directors, as we have seen in recent cases," Lim warned yesterday.

Resistance to minister's letter

Yesterday, it was also revealed that the GLCs have not received any proposal of a global settlement from Tajudin since October, thus raising questions regarding Nazri's letter directing GLCs to settle the matter and replace their existing lawyers with the firm Hafarizam Wan Aishah & Mubarak, known to be close to Umno.

DAP stalwart Lim Kit Siang in a statement yesterday described the intervention in a number of GLC lawsuits against Tajudin of being the "bailout of all Umnoputra bailouts" .

Petaling Jaya Utara MP Tony Pua, who is DAP's national publicity secretary, also criticised Prime Minister Najib Abdul Razak's position that ‘ off-site discussions' with Tajudin didn't necessarily mean an out of court settlement was in the offing.

NONE Pua ( left ) said it was a "a clear cut case of pandering to billionaire cronies" and showed the premier was not serious in fighting patronage, rent-seeking and cronyism in Malaysia.

It is learnt Nazri's letter dispatched on Monday did not go down well with some of the affected GLCs as well as Finance Ministry officials and officers in the Prime Minister's Department.

One source alleged that none of the GLCs have been approached, what more told of the "global settlement".

"In truth there is none. That is why they want to force these GLCs to appoint Hafarizam as the GLCs' solicitor. Hafarizam will withdraw cases claiming its the government's directive, whereas other solicitors might not do so," said the source.

What happened to MAS police report?

Another person familiar with the case wants the police to relook a report lodged by MAS on the instructions of former Petronas chairperson and one time MAS chairperson, Azizan Zainul Abidin, in 2002, regarding the government's re-purchase of the national carrier's shares from Tajudin.

The report was lodged after it was discovered that Tajudin and three former senior executives were suspected of alleged management irregularities.

This followed an audit ordered by the new management, after the government renationalised it in February 2002.

"Azizan was a no-nonsense man and he found some irregularities when he took over. What happened to the report, why was there no action taken? And now they propose this (the proposed settlement)," he said.

It was reported that MAS was struggling under some RM10 billion in debt, and had embarked on a restructuring plan since 2001, when Tajudin was deposed.

lingam tape panel meeting 031007 abdul gani patail A police probe was launched by the then Commercial Crime Investigation Department director Ramli Yusof who recommended action be taken but this was shot down by the Attorney General Chambers led by Abdul Gani Patail ( right ).

MAS then lodged a report to the then Anti-Corruption Agency but the progress of its investigations was said to be disappointing.

Another report was lodged by MAS over the RM8 billion losses. However, the progress of the investigation has also been also disappointing.

The Malaysia Anti-Corruption Commission however has continued investigations following the discovery of 'new evidence'.

Malaysiakini had reported on Friday that certain quarters have expressed concern that following Nazri's letter, the probe by the MACC on Tajudin may stop.

To date there has been no official comment from the MACC on this matter.