DAP has accused the government’s alleged intervention in a number of GLC’s lawsuits against former Malaysia Airlines (MAS) chairperson Tajudin Ramli of being the “bailout of all Umnoputra bailouts”.

“It boggles the imagination as to how the withdrawal of all suits against Tajuddin could save the federal government billions, when it has entered national folklore that it is the Malaysian taxpayers who are the real victims of the Tajudin-MAS financial bailout in 2000 to the tune of billions of ringgit,” said DAP veteran Lim Kit Siang in a statement today.

Lim slammed PM Najib Abdul Razak’s explanation - that the government was not negotiating a settlement for Tajudin, but merely carrying out an “off-site discussion” - as reeking with the makings of a bailout.

“Are Najib and Nazri seriously suggesting that after causing MAS, the federal treasury and the Malaysian taxpayers to suffer some RM10 billion losses, Tajudin is still in a position to virtually hold Putrajaya to ransom to force a ‘global settlement’ of all civil suits filed by GLCs especially MAS, TM and Prokhas (formerly Dahaharta) as to require the lawyers of all GLCs concerned to hand over their cases to a known Umno lawyer?” he asked.

On Thursday de facto law minister Nazri Abdul Aziz admitted that he sent a letter to government-linked companies (GLCs) on Aug 8 over a settlement with Tajudin, saying he merely "advised" the GLCs to drop their suits against the tycoon.

Lim notes how in 2000 the government spent RM1.8 billion in taxpayers' money to buy out Tajudin’s 29.09 percent stake in MAS at RM8 per share, an excess of RM4.32 over market price at the time.

He also slammed Nazri for being “misleading” in saying that the government would “save billions” in going for a settlement with Tajudin, by citing a RM13.6 billion countersuit against Danaharta and other GLCs by the tycoon that had already been dismissed in 2009.

“The latest ‘Tajudin intervention’ has all the makings of being the ‘bailout of all Umnoputra bailouts’ couched as, ‘It looks like a bailout, sounds like a bailout but its not a bailout’..."

"The onus is on Najib and Nazri to produce all relevant information to convince the long-suffering Malaysian taxpayers and public  that it is not so,” he said.

‘Tajudin getting away scot free’

Meanwhile DAP national publicity secretary Tony Pua slammed Najib’s excuse as “a clear cut case of pandering to billionaire cronies” and showed that the PM was not serious in the latter’s claim to fight patronage, rent-seeking and cronyism in Malaysia.

“In fact, the ‘off-site’ solution by Najib suggests some secret rendezvous between the two parties to thrash out a handshake deal by subterfuge,” said Pua in a statement today.

“The crude and blatant attempt to direct all GLCs to withdraw their multi-billion suits against Tajudin ... leaves a bad taste in the mouth.”

Instead of fighting cronyism, said the PJ Utara MP, Najib was “doing the complete opposite”.

“The prime minister is more than tolerating behaviour of rent-seeking and patronage, he is protecting the richest cronies who have benefited from the largesse handed down by the Barisan Nasional government.

“The attempt by Najib to withdraw all suits againts Tajuddin, and to even replace all the lawyers independently appointed by the GLCs with a well-known Umno lawyer smacks of letting Tajudin get away scot free,” said Pua.

He called the suggestion for the GLCs to drop their lawsuits against Tajudin as “improper, an abuse of power and a corrupt practice to protect a billionaire crony”.