Only in Malaysia can a minister, such as Minister in the Prime Minister's Department Nazri Abdul Aziz, direct government-linked companies (GLCs) to settle their law suits - such as those involving several GLCs and tycoon Tajudin Ramli.

NONE Such a directive issued by Nazri, who is de facto law minister, is wrong and is deemed interfering with GLC affairs, Parti Kesejahteraan Insan Tanah Air (Kita) president Zaid Ibrahim, who was also a former de-facto law minister, said today.

"By law, the board of directors of GLCs are bound to answer to the company and not to a minister or to the government. Let's get this misconception clear.

"It is not necessary for them to follow the minister's directive as they are answerable for their actions to the company and not to the minister. Such things can only happen in Malaysia and I am not surprised that a directive was issued," Zaid said.

He said this when asked to comment on the Aug 8 letter Nazri issued to GLCs to settle their law suits against Tajudin, the former chairman of national carrier Malaysia Airlines, which has been the centre of controversy since the directive was revealed last month.

bar council debate on judicial commission 250407 nazri abd aziz However, Nazri has maintained that his Aug 8 letter was an advice to the GLCs to settle the longstanding disputes.

Zaid said he had to set the record straight as this concerned the laws of the country, with the affairs of the GLCs in mind and what is considered right and wrong.

"Please do not say that Zaid or Kita are merely supporting the Barisan Nasional or the opposition Pakatan Rakyat. We have our own stand," the Kita president said.

Reservations on MAS-AirAsia deal

He also expressed reservations over the Malaysia Airlines-AirAsia tie-up, which has been widely reported in the media.

Zaid admitted that he preferred to take flights on MAS and expressed his concern that AirAsia may benefit from this deal in the long run, resulting in the decline of the national carrier.

"This has happened before, in the past, and this can happen again... if I run a coffeeshop here and a rival runs another nearby and we asked to merge, will there be a possibility of one making sure both prosper or wanting the other to fall," he asked.

Zaid's arguments and concern over the minister's directive to GLCs are consistent with the views of Bar Council chairperson Lim Chee Wee, who had expressed apprehension over the proposed call for out-of-court settlements.

tajudin ramli 1 Nazri said that Tajudin had been in contact with the government for the past six months, proposing a settlement.

"I wrote to the GLCs after gaining approval from Second Finance Minister Ahmad Husni Hanadzlah, and as a law minister to the effect, as this case has been going on for so long - six years," Nazri had said.

However, there has been no inkling of the global settlement as proposed by Tajudin since the Court of Appeal granted the former MAS chairperson time, since October last year, to propose settlements.

'No hudud talk when I was in Pakatan'

Danaharta and two of its subsidiaries have a Kuala Lumpur High Court judgment ordering Tajudin to pay them RM589 million that he owes.

This is from a December 2009 court order to the once high-flying corporate player to pay up that amount. The court also dismissed his counter-claim of RM13.46 billion.

In their ruling, judicial commissioner Anantham Kasinater found Tajudin to have originally owed Danaharta RM1.4 billion, and that the one-time Celcom and Technology Research Industries Bhd (TRI) chairperson had failed to settle the debt despite it being reduced and he allowed to pay in four instalments spread over three years.

Asked to comment on the hudud law as highlighted by Kelantan Menteri Besar Nik Abdul Aziz Nik Mat, Zaid said the federal constitution had to be amended if hudud law was to be implemented.

He said the issue was not discussed when he was in Pakatan Rakyat and working on the common framework for PAS, PKR and DAP.

"It was focused on a welfare government, not on hudud, so I am surprised why this is brought up now. For me, this is all nonsense, political rhetoric. This was not brought up when I was in Pakatan Rakyat and part of the Orange Book."