The share swap between AirAsia and Malaysia Airlines (MAS) is yet another example of private individuals acquiring companies owned by the rakyat , warned PAS vice-president Mahfuz Omar.

He also drew parallels between the transaction and the controversy involving former MAS chairperson Tajudin Ramli.

NONE “This is a manifestation of the failure of the privatisation programme by (former prime minister) Dr Mahathir (Mohamad). These two are symbols of great cronysm and corruption - privatisation based on ‘Who you know’ and ‘I help you, you help me’," said Mahfuz (left) .

“Even though Mahathir has retired for almost seven years, the people still have to pay (the price of his) 22 years (in office).”

When pressed that the deal was in fact a swap and does not involve transfer of wealth, Mahfuz insisted that this is a first step towards private acquisition of public ownership.

“MAS, from a company owned by the people - and which was on par with Singapore Airlines and Cathay Pacific - now has to bear losses and can no longer compete,” he told a press conference in Kuala Lumpur today.

“More sadly, its ownership is being transferred from the people to private individuals like Tajudin (left) - causing MAS to lose RM8 billion - and no one has not been held responsible for the theft.

NONE “Even though they say that the deal is merely a swap, it will lead to that - the transfer of the rakyat's property to individuals, like MAS being taken up by Tajudin (left) .

“(At the time), the government said it would have a ‘golden share’ in MAS, but it was clear that Tajudin profited from it and the people suffered losses ... RM8 billion in losses.”

Tajudin was executive chairperson of MAS from 1994-2001. During his tenure, the national carrier suffered massive losses.

This prompted an investigation by the Commercial Crime Investigation Department (CCID) and the Anti-Corruption Commission.

The CCID had recommended that action be taken against Tajudin, but the Attorney-General's Chambers did not pursue the matter.

   

‘Firefly may lose out’

Mahfuz raised the issue of monopoly and the possibility of AirAsia eventually taking over all of MAS.

"With this swap, will Firefly (MAS's budget carrier) stop being a competitor and allow full monopoly of budget flights by AirAsia?" he asked.

firefly airline Should the deal be reversed in future, Firefly is likely to lose out, he noted.

Mahfuz also questioned if minority shareholders had been consulted prior to the deal, and called on the government to have both companies disclose their liabilities, profits and cash in hand.

Under the Comprehensive Cooperation Framework , the parent company of AirAsia, Tune Air Sdn Bhd, has acquired 20.5 percent of shares in MAS.

State investment arm Khazanah Nasional Bhd has acquired 10 percent of shares in AirAsia, becoming the budget carrier's largest shareholder.

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