Attorney-General Ainum Mohamed Saaid should initiate investigations of whether criminal breach of trust was committed in the government buyout of businessman Tajudin Ramli's stake in Malaysian Airline System (MAS) as it was done without any independent valuation, DAP chairman Lim Kit Siang urged today.

Lim said that Ainum should be fully aware of her discretionary powers as AG and not subject herself to any influence by others, whether a cabinet minister or the prime minister, as one of her greatest challenges is to restore public confidence in the independence, integrity and professionalism of her office.

"The AG should not be guilty of the sin of selective prosecution and must be prepared to prosecute without fear or favour if there is the offence of criminal breach of trust in the RM1.79 billion MAS deal," Lim said in a statement to malaysiakini today.

According to a Singapore Business Times report yesterday, Tajudin disclosed in a Jan 22 circular to minority shareholders of Naluri Bhd (in which he owns 47 per cent equity) that no independent valuation was done when the government agreed to pay him RM1.79 billion for his company's 29.09 percent block of shares in MAS.

The government paid RM8 per share representing a premium of RM4.32 or 117 percent over the closing market price at RM3.68 per share when the deal was signed on Dec 20, last year.

No reason to complain

The SBT report said that minority shareholders of Naluri are unlikely to complain regarding the deal.

It quoted Tajudin as saying that RM927.4 million will be used to retire Naluri's debts, while the balance of RM 864.5 will be for new business ventures.

In the meantime, it added, Naluri will place the remaining proceeds in banks and earn RM24.2 million a year.

Naluri is scheduled to have its shareholders's meeting tomorrow to seek approval for the deal.

Lim said today although it would be asking too much of Naluri shareholders to reject the deal, when they have so much to gain, there should be those who could put national interests above personal interests.

"Will there be Naluri minority shareholders who could subordinate their personal interests to national interests by blocking the deal and demand that it should be subject to an independent professional valuation before any approval was given by them or by the government?" asked Lim.

No 'hair-cut'

He added that the deal "stinks" because it violated the government's own rules for rescuing industries and companies as laid down by the National Economic Recovery Plan (NERP).

The NERP which was formulated by the National Economic Action Council stated that in the event of a rescue involving public funds, private investors and lenders must accept appropriate financial losses.

Lim said that in this present deal, there was not only total lack of transparency and accountability undermining government credibility and public confidence, but Tajudin was spared from taking his "hair cut".

"Instead, Tajudin has been given a bonanza at taxpayers' expense to reward for his mismanagement of MAS by being given 117 per cent premium for the shares over the market price, transforming it into a personal rescue for Tajudin instead of a public rescue for MAS," he added.