Despite facing a possible RM38 million defamation suit , DAP Seputeh member of parliament Teresa Kok ( centre ) pressed on with her allegations of impropriety against a politically-connected company for defrauding national carrier Malaysia Airlines (MAS).

Kok yesterday trained her guns at both the Finance Ministry and Transport Ministry for not setting up an impartial committee to probe into the allegations.

The MP has submitted a memorandum, backed with documentary proof, to the ministries two months ago.

"The two ministries should joint forces to investigate the allegations which is said to have resulted losses to the tune of million of ringgit to the national carrier. They should not leave it to MAS [to investigate] since part of the allegations also involved the airlines' officials," she said.

Earlier this week, representatives of the two ministries said they have handed Kok's memorandum over to MAS for an internal inquiry.

Deputy Finance Minister Dr Shafie Salleh said the Finance Ministry - which is directly responsible for the state-owned MAS - did not plan to set up another committee to probe into the accusations.

"Since police reports have been lodged, let the police investigate," he told malaysiakini .

Meanwhile, Transport Ministry parliamentary secretary Donald Lim said he was "satisfied" with the investigation report submitted by MAS.

"MAS said the allegation is false since the alleged company which has committed fraud is not their ground-handling agent in Dhaka airport. The agent is the Bangladeshi national carrier, Biman Airlines," Lim said.

But when told that Biman has issued a clarification letter denying it was responsible for handling cargo shipments for MAS, Lim declined to comment further.

"I was told that the issue will soon involve the court. I wouldn't like to say much on the matter," he said.

Corruption and fraud

MAS Dhaka-based general sales agent - Silkways Cargo Services Ltd - has served a legal letter to Kok demanding that she immediately cease making allegations of weight cheating involving the cargo company.

A senior MAS employee have lodged two police reports against Silkways on April 21 and May 26.

The reports claimed Silkways committed fraud through under-declaring the weight of its cargo by manipulating the shipment data and offering inducements worth millions or ringgit to MAS officials.

Silkways is co-owned by Shah Alam MP and Parliamentary Backbencher Club chairperson Mohd Zin Mohamed who has headed the board of directors for the past three years.

The company was appointed by MAS since Sept 2001 as its general sales (freight) agent in Dhaka.

Two weeks ago, the feisty opposition politician received a legal letter from Silkways through its Bangladeshi legal firm Sobhan & Sobhan, demanding that she "retracts and apologises" over her public statements made against the cargo company in seven days.

Should she fail to apologise, the letter said Silkways will commence legal action - both civil and criminal - against her and others for defamation in seeking damages in excess of US$10 million (RM38 million).

However, Kok said she had yet to receive any further communication from Silkways since its threat to take legal action.

Written reply

Meanwhile, Kok has sent a protest note to Acting Transport Minister Ong Ka Ting yesterday over a "unsatisfactory" parliamentary written reply pertaining her question in the Dewan Rakyat on Monday on the matter.

The three-paragraph written reply - which denied the charges - was sent to Kok on the same day.

"Regarding the weight-cheating allegation, MAS has investigated the matter and found no fraud by Silkways Cargo Services,' said the reply from the Transport Ministry.

Kok said the short reply showed the ministry is not taking the two police reports seriously but is "only interested to protect the MAS agent in Bangladesh without consider the losses that it has brought to MAS".