National carrier Malaysia Airlines (MAS) has started an internal investigation over a police report lodged by an employee yesterday, claiming that a Dhaka-based freight company and two airline officials are involved in weight cheating over cargo transport.

Contacted today, MASkargo business development and sales general manager Shahari Sulaiman said the matter has been brought to the attention of the airline's top officials.

MASkargo is a subsidiary company established to handle worldwide delivery of cargo through the airline's network of routes.

Preliminary comments

In the police report, the MAS employee alleged that the freight company, Silkways Cargo Services Ltd, was committing fraud by under-declaring the weight of cargo transported by the airline. The company is a general sales (freight) agent for MAS.

The complainant said this had been occurring since the company was set up in September 2000, and that two MAS officials in Dhaka were abetting the alleged practice. Between July 14 and Sept 29, the duo were said to have received inducements worth some RM1.1 million.

Asked for details, Shahari ( photo ) declined to elaborate but claimed that his company "knows quite a lot" about it. He confirmed, however, that the two people named in the police report are employees of MAS.

"Definitely we are investigating the matter and we will issue a press statement o­n this. We will have to look into the details," he said.

Asked if this was the first police report lodged by an employee over alleged weight cheating, Shahari replied: "I don't think the complainant is a MAS senior employee, I think he is a former employee.

"We know quite a lot (about this issue)... In terms of responding to media reports, our communications department is prepared to respond, (so) please wait for the statement."

Shahari said he was uncertain as to whether MAS itself would lodge a police report against the freight company pending the outcome of its inquiry.

MASkargo corporate communications controller Ebiazly Abdullah said his department was assisting in the investigation by gathering related information for senior officials.

He said the process would "hopefully be completed today" after which an official statement would be issued.

Local connection

Silkways is co-owned by Shah Alam MP Mohd Zin Mohamed ( photo ), who is also chairperson of the Parliament Backbenchers Club.

He said yesterday that he was not involved in the company's operational aspects, but that he would call for a board meeting to discuss the matter. Mohd Zin has headed the board for the past three years.

The issue came to light at a press conference called by DAP Seputeh MP Teresa Kok ( photo ) after the report was lodged at the Petaling Jaya district police headquarters.

Copies of the report and related documents were released to journalists during the press conference, although the complainant himself was not present in order to protect his identity.

Two others who claimed to have knowledge of the matter provided details, saying they "don't want to see MAS continue to suffer losses".

Based o­n rough estimates, they claimed that MAS may have sustained losses amounting to RM3.4 million over the past two years due to the alleged practice.