Deputy Prime Minister Najib Abdul Razak today said that he has no knowledge over Tajudin Ramli's claim that the tycoon was 'instructed' to buy Malaysia Airlines (MAS) shares as 'national service' in a secret deal with the government in 1994 to help rescue the central bank, which was reeling from massive currency trading losses.

"No, I am not aware of that, so I can't comment on what he said," Najib told a press conference after witnessing the signing of a memorandum of understanding between the Media Prima Berhad and the Barisan Nasional Backbenchers Club at the Parliament House in Kuala Lumpur for the production of a 'Smart Entrepreneur' television programme.

Tajudin, in an affidavit filed last Thursday, claimed that his RM1.8 billion acquisition of a 32 percent stake in national carrier MAS in 1994 - through Naluri Bhd - was done on the instruction of then premier Dr Mahathir Mohamad and then finance minister Daim Zainuddin.

The high-profile businessman alleged that he had bought the MAS shares at RM8 each, above the then market price of RM3.50, as a 'national service' to help out Bank Negara (which then owned the MAS shares) following its forex losses.

"I don't know what transpired as alleged in this document [...] I can't recollect, I don't remember (whether) it was discussed but anyway, I don't want to comment on something which I am not sure about," Najib told reporters.

He said he only aware of the buying back of the MAS shares in 2000 by the government from Naluri at RM8 a share (above market price of around RM3) as the "... cabinet was informed". The buying back of the shares was severely criticised by various quarters then.

The deputy premier appeared reluctant to elaborate on the matter. When asked whether Mahathir and Daim's alleged instruction was considered an abuse of power and action be taken, Najib answered: "Enough, enough ...."

He was clearly agitated when the media pressed him for further comments.

"I don't want to talk about it anymore, I told you whatever needs to be told. Can you understand English or not?" he blurted out.

Prime Minister Abdullah Ahmad Badawi is currently on a two-week holidays in Perth, Australia, and he will not back until next week.

Danaharta 'conspiracy'

Tajudin's revelation was made in a countersuit against Pengurusan Danaharta Nasional Berhad (Danaharta), the government and several other companies and individuals for a total sum of about RM13 billion.

It was filed on June 29. Prior to that, Tajudin had been sued by Danaharta for RM589 million.

In the midst of the Asian financial crisis in 1998, the loans Tajudin took became non-performing and were taken over by then-national management assets company Danaharta. These included securities like Naluri Bhd and Technology Resources Industries Bhd (TRI) that Tajudin had pledged to the banks.

After the government bought back the stake in MAS from Naluri, the latter and Danaharta tried to work out settlement but failed. This paved the way for Danaharta to sell off shares of Naluri and TRI.

In May this year, Danaharta sued Tajudin to recover another RM589 million which led Tajudin to file his countersuit.

Tajudin claimed he was requested never to reveal this 'secret deal' and that he had honoured it because he was given repeated assurances by Mahathir and Daim that he would not suffer any financial losses and liabilities.

He described Danaharta's legal action against him as a breach of an 'overriding agreement' by the government of Malaysia and he now had no choice but to reveal 'the truth'.

He alleged a conspiracy by Danaharta which saw the sale of his shares in TRI to Telekom Malaysia cheaply, enabling Telekom to merge its cellular telecommunications business with TRI's subsidiary Celcom.

Full investigation wanted

Public Accounts Committee (PAC) head Shahrir Samad said Tajudin will have to be compensated if he was doing 'national service' as claimed. But the Johor Baru MP, however, added the matter should be decided by the courts.

"In the first place, I thought it was unreasonable for anybody to borrow so much money to buy over MAS. There was not a necessity for an individual to buy over the national airline," he told reporters when met at the Parliament lobby.

"The amount of borrowing that went into the purchase was staggering because the borrower would have to pay back the loan and the interest required, (it) would require a lot of funds just to service the loan. Anyway, it was a government decision.

"In the end, it didn't seem reasonable why the government should buy back the MAS shares way above the market price. Now it seems to be re-explained by Tajudin. It will be interesting times ahead," said the PAC chief.

Shahrir was the only Umno politician to have publicly questioned the deal in 2001.

Meanwhile, parliamentary Opposition Leader Lim Kit Siang urged the government to set up a royal commission of inquiry to conduct a public investigation adding that he wondered whether the whole nation had been taken for a decade-long ride by Mahathir and Daim with numerous buy-out and sell-back scandals.

"The Tajudin litigation has raised afresh many good governance and public interest questions which cannot continue to be avoided if the Abdullah premiership is not to be tarred with the brush of colluding and conniving in their cover-up," he said in a statement.

Transport Minister Chan Kong Choy, meanwhile, also claimed no knowledge of the 'secret deal' when asked at a press conference at the Parliament's lobby.