Startling details had recently emerged concerning the sale and purchase of Malaysia Airlines (MAS) shares involving business tycoon Tajudin Ramli.

However, a corruption watchdog today revealed that the issue was brought to the attention of the police five years ago but 'no action was taken'.

The Anti-Corruption and Democratic Movement - known by its Malay acronym as Gerak - said the report was lodged with the Kuala Lumpur International Airport police station on Jan 27, 2001.

In a statement, Gerak chairperson Mohd Ezam Mohd Nor claimed that a total of 1,336 people had filed the same report over the Finance Ministry's purchase of MAS shares from Naluri Bhd, a company owned by Tajudin.

"That police report made history because it saw the greatest number of complainants ever. Among them were opposition leaders, representatives from non-governmental organisations and concerned citizens," he said.

About a month later, Ezam, who is also Parti Keadilan Rakyat (PKR) Youth chief, said his statement was recorded by the police on the 'excuse' of starting an investigation.

"I gave them my fullest cooperation and asked for an assurance from the police that statements would also be recorded from Tajudin, (former premier) Dr Mahathir Mohamad and (former second finance minister) Daim Zainuddin.

"Unfortunately, no such investigation commenced. Their statements were not recorded while I was later arrested under the Internal Security Act (ISA)," added the opposition leader.

Explain why

Five years later, Tajudin makes shocking revelations on the matter and the issue has now become the talk of town, he said.

In view of this, Ezam urged the police and the Attorney-General's Chambers to explain why they did not act on the report lodged in 2001.

"If the authorities had acted then, the truth and interest of the people could have been safeguarded much earlier," he said.

Tajudin, in an ongoing suit and countersuit between him and national management assets company Danaharta, revealed that he was directed by Mahathir and Daim to buy the ailing carrier shares in 1994.

The well-connected businessman claimed in court documents that he was asked to buy the shares as 'national service' after Bank Negara (which owned MAS shares then) suffered massive forex losses, due partly to speculation in foreign currency markets.

He purchased the controlling stake of 29 percent in MAS from Bank Negara, paying RM8 per share when the market price was round half that.

Tajudin reluctantly took out a RM1.8 billion loan for the purchase, pledging other companies he owned as collateral.

The loans became non-performing during the 1997 Asian financial crisis and were taken over by Danaharta, along with Tajudin's companies, including mobile provider Celcom, since acquired by state-owned Telekom Malaysia.

The government bought back the loss-making airline in 2000 in what was widely seen as a bailout for Tajudin, RM8 per share, again more than twice its market value at the time.