The opposition's bid to discuss the bailout of Renong Berhad by Khazanah Nasional Berhad (KNB) was rejected in chambers by the Parliament speaker today on the grounds that 'the matter was not urgent'.

House Speaker Dr Mohamed Zahir said KNB was initiated under the Danaharta Nasional Berhad Management Act and was meant to 'take over and revive problematic companies that the government thinks is necessary'.

"Therefore the question of whether the government has the right to do so or not has been discussed in detail by the members of parliament when the law was tabled," he said, in his letter to DAP MP Chow Kon Yeow who submitted a resolution the matter on July 20.

"The law has been passed and there is no need to raise the matter now unless the law has been abolished," he said.

The government yesterday announced its intended takeover of debt-ridden Renong at the cost of about RM4 billion.

Renong, which has interests in banks, tolled highways, oil and gas and real estate, is Malaysia's most debt-burdened conglomerate. It has some RM13 billion in outstanding group debts.

'Nationalisation of losses'

Mohamed Zahir said that whatever expenses incurred by the government in the Renong takeover will be presented in Parliament according to the laws provided.

"It will be up to the MPs then whether to approve the expenses or not," he said.

In his resolution, Chow urged the House to view the bailout of Renong seriously.

"This House, which has been given the mandate by the rakyat , should consider it serious that the people's money will be used to rescue crony companies that suffer financial problems," said Chow.

"The privatisation policy has become the privatisation of profits and the nationalisation of losses," he added.

Chow said when the economy was booming, private companies were 'offered massive projects to enable them to reap a big profit'.

However, when the company made losses and had massive debts, the government would use public money to aid these selected businessmen, he added.

Transparent and accountable

"There is no such system in the world such as Malaysia where when the business was good, the company made money. When the business is bad the people have to pay more taxes to rescue these companies," said Chow.

He urged the government to be transparent and accountable in the take over of Renong as it involved billions of ringgit of the people's money.

"The prime minister must get the approval of Parliament before bailing out Renong," he said. "The House should debate this issue because it is a specific issue that concerns the public and therefore has to be discussed urgently," he added.