Some of the government-linked corporations (GLCs) which sued tycoon Tajudin Ramli or are being sued by the former Malaysia Airlines chairperson have decided there is nothing before them to consider over his proposal for an alleged global settlement to the long-standing dispute.

Malaysiakini has learnt that all the GLCs had either conducted or will conduct their own internal board of directors meeting to discuss Minister in the Prime Minister’s Department Nazri Abdul Aziz’s letter earlier this month and give the necessary directions.

A directive to hold their individual meeting follows Bursa Malaysia’s directive that they make an announcement on the whole affair. The GLCs are caught in a bind as a result of Nazri’s letter, affirming the government and Finance Ministry had given a mandate to him (Nazri) to act for the government in a controversial out-of-court settlement deal.

NONE The meetings late last week or this week are believed to give directions to the respective GLC companies following the minister’s letter dated Aug 8 which some confirmed receiving and others did not.

Last Tuesday MAS, Telekom Malaysia Bhd and Axiata Group had made an announcement to Bursa Malaysia confirming they had not received any proposal of a settlement from Tajudin ( left ).

Bank conglomerate CIMB had made a similar announcement a day later, saying any settlement of Tajudin’s counterclaim against it would be subject to its board’s endorsement.

The GLCs held a meeting early last week with Khazanah Nasional Bhd, the government’s investment arm and the golden shareholder.

The move for the meeting of the firms’ boards has come under scrutiny as sources had indicated that Khazanah cannot dictate to the boards of directors of the GLCs to withdraw the suits, to settle the claim or change solicitors midway in a settlement.

Tajudin was reported to have offered a global settlement to the GLCs since last October, although his appeal was still pending at the Court of Appeal.

However, since two appellate court seatings and a postponement had been sought by Tajudin’s lawyers, there is no sign of the terms of the proposed global settlement.

The tycoon’s appeal follows the Kuala Lumpur High Court’s order in December 2009 to Tajudin to pay the RM589 million it owed to Pengurusan Danaharta Sdn Bhd and two of its subsidiaries which manage his debts.

The same court had also dismissed his counter-claim of RM13.46 billion. Justice Anantham Kasinater, now a Court of Appeal judge found Tajudin had originally owed Danaharta a total of RM1.4 billion, and that the one-time Celcom and Technology Research Industries Bhd (TRI) chairperson had failed to settle the reduced debt in four installments spread over three years.

MAS board met recently

It is learnt that the board of directors of MAS had held a meeting yesterday.

Besides announcing MAS’ quarterly net losses in excess of RM527 million for its second quarter, it was learnt the board agreed:

  • Since the terms of settlement are still unknown and Tajudin has  not made any proposal to MAS, there is nothing for the MAS board to consider;
  • MAS will not reply to the minister’s letter as it does not wish to heighten the controversy and since the minister has already said it was just an advice. MAS would only reply if it receives further communication from the minister;
  • Any decisions on settling the cases or to change solicitors will be decided by the MAS board taking into account the views of MoF as the special shareholder.

It is learnt that following this, the status of the appointment of the firm Hafarizam Wan Aishah & Mubarak, a firm closely linked to Umno, to represent the GLCs as directed in Nazri’s letter remains uncertain.