The MAS Story: Of Arrogance and Folly

by Din Merican

In the early 1990s, Tajuddin Ramli was the poster boy of then Prime Minister Dr Mahathir Mohamad’s plan for Bumiputera wealth creation. He was the iconic bumiputera businessman and a key “payung” (mentor) for other bumiputera entrepreneurs. For that he was practically handed the post of President of the Malay Chamber of Commerce.

Why bother? Do they matter? Making Obscene Money under Crony Capitalism

Tajuddin would inspire the Malays to achieve the 30% bumiputera equity which was the target under the now controversial New Economic Policy. The economic objective to eliminate poverty amongst the Malays and give them a share of the economic pie became the primary means for enrich ing only a few Malays , especially those associated with the dominant ruling party, UMNO and their cronies (crony capitalism).An economic pie meant for the Malays who constitute 50% of Malaysia’s population of 27 million people would now be in the hands of only a handful of Malays. Now that can be a big pie!

Mentor for other bumiputera entrepreneurs!

Making Obscene Money under Crony Capitalism

In 1994, Tajuddin was handed on a silver platter control of the national airlines, Malaysia Airline System Bhd (MAS). MAS was flushed with cash then. To be exact, according to various reports, including the MACC report made by the MASKargo’s Managing Director, Shahari Sulaiman, MAS had RM600 million in cash. That was a lot of money at that time. By 2001, Tajuddin had to leave and MAS was burdened with a RM8 billion debt. That was a lot of money to lose at that time. Despite the losses, the government bought back MAS from Tajuddin at RM8 per share when the market price at that time was just slightly below RM4 per share. That was a 100% profit for Tajuddin. That was a lot of money to make after having caused MAS to lose RM8 billion!

Tajuddin sued MAS

So, MAS sued Tajuddin Ramli and his cohorts. According to the reports, the former Chairman counter sued several parties including Danaharta and the Government of Malaysia for RM13.6 billion. In his counter suit, Tajuddin alleged that he was just a government agent and nominee. By his rationale, he did nothing wrong. If he plundered, he did so with the government’s blessings. So, what’s wrong with that? After all, Abdullah Badawi also did the same thing in the LSG Skychef- Ibrahim Badawi deal with MAS!

Mega-financial scandal : the RM8 billion MAS-Tajuddin Scam !

Then last month, in a filing to Bursa Malaysia, MAS announced that Tajuddin had also filed a countersuit for RM 500 million claiming that he had been defamed by MAS when MAS complained to the MACC.That Bursa filing also disclosed that Tajuddin’s countersuit was in retaliation for MAS suing him for various breaches of fiduciary and statutory duties and for defrauding MAS in several related party transactions.

I was getting a bit loss there because MAS Bursa’s filing said that MAS wanted damages against Tajudin for RM174,620,695.00 for the losses caused by Tajuddin in the Hahn Airport project and for an indemnity for the amount MAS had to pay to an ICC Arbitration involving ACL Advanced Cargo Logistics GmbH. As far as MAS is concerned, ACL is a Tajudin camouflaged company. Instead, Tajuddin wants RM500 million from MAS for having caused MAS to suffer that loss? Now this is becoming a bit dizzy. Tajuddin caused loss to MAS and yet he now wants MAS to pay him because MAS complained against him to the MACC? Does that make sense to you? Maybe, but not to me.

The Bursa Malaysia filing also disclosed that Tajuddin’s counter suit for RM 500 million was in retaliation for MAS when MAS complained to the MACC

Then it all began to make sense when RPK’s postings on September 8 and September 14 showed that Tajuddin had claimed in his court papers, in his affidavit to be exact, that he was given immunity by UMNO. Then it all made further sense when RPK posted letters from Tajuddin’s lawyers, Messrs Lim Kian Leong, that Tajuddin is seeking a “Global Settlement” with the assistance of the Courts in a “‘mediation process”.

Tajuddin’s Lawyers, Messrs Lim Kian Leong, that Tajuddin is seeking a “Global Settlement” with the assistance of the Courts in a “‘mediation process”.

“Global Settlement” Sought

Now, what this “Global Settlement” is about is not yet known. But it is not too difficult to imagine that Tajuddin is beginning to be worried that he may not be protected forever especially since he had maligned Dr Mahathir and others as being responsible for his actions in MAS. He is worried that Dato’ Seri Idris Jala who was the former MAS MD, is now the Minister in charge of the National Key Result Areas (NKRA) and PERMUDAH and knows all Tajuddin’s misconduct in MAS. He is worried that former IGP Musa Hassan who had been so unceremoniously bundled off is no longer there to provide him cover. He is worried that his photo with A-G Gani Patail had been made public. He is worried that the relationship of A-G Gani with his henchman, that ex-policeman who was once charged for corruption, Shahidan Shafie, has been exposed. He is worried sick that his web of deceit in covering up his ownership in the so called German company, ACL GmbH ,has now been discovered. Tajuddin Ramli is a worried man. So he wants a “Global Settlement”.

TajudinRamli is worried sick that his web of deceit in covering up his ownership in the so called German company, ACL GmbH ,has now been discovered.

It is not too difficult to imagine that the “Global Settlement” will result in all the criminal cases against him which have been identified by Dato Ramli Yusuff, former Director CCID PDRM, being remain buried. That his crimes which have been NFA’d by the AG Gani Patail will not be re-opened. It is not too difficult to imagine why the MACC did nothing about MAS’s complaints of the collusion between the PDRM and A-G Gani Patail. It is not to difficult to imagine that deals will be struck to cover all these up. It is in this context that the revelations in an Open Letter by former Kuala Lumpur CID Chief, Dato’ Mat Zain Ismail, become a powerful testimony of the manipulation of the country’s criminal justice system by no other than former IGP Musa Hassan and AG Gani Patail.

“Global Settlement” will result in all the criminal cases against Tajuddin Ramli which have been identified by Dato Ramli Yusuff, former Director CCID PDRM, being buried. That his crimes which have been NFA’d by the AG Gani Patail will not be re-opened.

Dato Mat Zain’s Open Letter

Dato Mat Zain holds Musa and Gani responsible when he asked this rhetorical question:

“Apa sudah jadi dengan Sistem Keadilan Jenayah kita?…siapa yang sepatutnya dipersalahkan? Siapa yang menyebabkan Sistem Keadilan Jenayah kita menjadi kucar kacir sehinggakan sesiapa juga boleh mempermain-mainkannya tanpa takut kepada sebarang tindakan dan hukuman undang-undang?

Saya tidak teragak-agak untuk menyatakan bahawa keadaan ini berpunca daripada ‘precedent’ yang dibuat oleh Tan Sri Gani Patail dan Tan Sri Musa Hassan sendiri.” .

On October 8 2010, Mat Zain bin Ibrahim wrote a 20-page open letter that blows the lid on many issues. You have to read this letter to believe it. In that letter, the former senior cop tells all about long-lodged reports that have only gathered dust in the back-offices of the authorities. Why - because these involved the untouchables, namely Dr Mahathir, Rafidah Aziz, Rahim Thamby Chik, Eric Chia, Attorney-General Gani Patail, recently-retired IGP Musa Hassan ... the list goes on ...

So what do we have here now with Tajuddin Ramli? He is still a wealthy man while those who pursued him — ex-CCID Director Ramli Yusuff and lawyer Rosli Dahlan — ended up in court facing trumped up charges. Tajuddin could get away with murder because Prime Minister Abdullah Ahmad Badawi was also plundering MAS. Others in UMNO were also plundering MAS. And they are in power and can still manipulate the criminal justice system. RPK’s MACC Part 14 also disclosed the manipulations by those in the corridors of power of the criminal justice system.

Dato Murad Khalid reappears

RPK exposed that Dato’ Murad Khalid formerly Assistant Governor of Bank Negara Malaysia was forced to sign a Statutory Declaration (SD) in order to crucify Anwar Ibrahim. These are all connected to the VK Lingam’s tapes of fixing appointments in the Courts and in the A-G Chambers.

In order to do justice for his own sake, Datuk Murad Khalid signed a Statutory Declaration (SD) in order to crucify Anwar Ibrahim. These are all connected to the VK Lingam’s tapes on fixing appointments in the Courts and in the A-G Chambers.

When talking about Dato’ Murad’s SD, RPK said this – “What happened to lawyer Rosli Dahlan who was brutally arrested and charged for defending his client, Dato’ Ramli Yusuff, is not the first. The only difference is that Rosli Dahlan is fighting back. He is not taking things lying down as some have done in the past.” On this part, I am about to differ with RPK.

Lawyer Rosli Dahlan from Lee Hishammuddin Allen & Gledhill

I am not too sure now if Rosli still has the stamina to fight back. I noted from the MAS Bursa announcement the part which states this: “MAS has been advised by its solicitors, Messrs Lee Hishammuddin Allen & Gledhill, that it has a good defence to Tan Sri Tajudin Ramli’s counter claim.

MAS has instructed its solicitors to take the necessary action to set the matter down for trial as soon as possible, so as to avoid further interlocutory proceedings that have already delayed this matter for over 4 years and which may further delay this matter.”

Tajuddin’s Countersuit of RM500 million for Defamation

I spoke to several lawyer friends who said that Tajuddin’s counterclaim of RM500 million for defamation is frivolous. Usually frivolous claims are struck out. Yet I see from that announcement that Lee Hishammuddin Allen & Gledhill is not taking that course of action. Is it because Hishammuddin is instructing his former firm to not pursue this? Is it because this is part of the deal, the “Global Settlement” mentioned by Tajuddin’s lawyers. That MAS announcement did not mention Rosli Dahlan’s name, but I have no doubt that Rosli is the lawyer responsible for pursuing Tajuddin in that case.

Is that why the MACC is dragging Rosli’ case which has now again been postponed to December 28? Quite clearly, nobody works at that time of the year and it can be anticipated that Rosli’s case will drag on until the year 2011 and may be beyond. Is the MACC being used like how it was used against Dato’ Murad Khalid to secure Rosli’s cooperation not to push the MAS case against Tajuddin too hard? Is this also part of the “Global Settlement”?

MACC is dragging Rosli’ case which has now again been postponed to December 28, 2010 !!

Rosli’s Curt Response

I tried calling Rosli to find out about all these. I wanted to clear the air about them. I wanted to be assured that Rosli is not succumbing to pressure and caving in. But Rosli gave me a curt standard lawyer’s phrase that he can’t discuss his professional work. I respected that, but I suspect there is more to it. I suspect that he is tiring out and emotionally depleted. I suspect that there is something fishy in this “Global Settlement” and that in the end everything will be buried.

I want to remind Rosli that I have been writing about his case because I believe he will stand up against gross injustice. That he would not take things lying down. Yes, I will not deny that was my agenda for reporting his case. I believe writing about Rosli could inspire other Malaysians to speak up against the wrongs that have been perpetrated. I believe that Rosli could play a role in the Third Force in the next General Election.

I wanted to prod him in that direction. Rosli is the right recipe for an election candidate. If Loh Guo Burne can be a PKR candidate and Member of Parliament by just snooping around and catching VK Lingam on tape, then Rosli is better suited to be an MP. It is not every day that you have a low profile bumiputera lawyer taking on the whole establishment.

This is an election story. The signs are already there. Yesterday’s budget speech is an election budget speech. Have no doubt that GE 13 is not too far away. But these recent developments have caused me some concern. I hope I am wrong about Rosli caving in. I hope the government is not using the MACC to squeeze Rosli by delaying his case. I hope Rosli will not succumb to pressure. So I thought I would ask Rosli for coffee if he was uncomfortable talking over the phone.

I asked to meet him at the Kuala Lumpur Golf Country Club on Wednesday October 13. I waited from 9am but Rosli did not turn up, even past 10 am. I was getting upset, until providence step in. While Rosli did not turn up, Tajudin Ramli appeared. He was with a group of Chinese friends.

Tajuddin, once a bank officer from Kedah, was snobbish, arrogant, and "elitist" when I last saw him at KLGCC.

I knew Tajudin since his banking days. I thought this was a good opportunity for me to seek clarification from him, to give him the opportunity to tell his side of the story. I heard that both he and Halim Saad have said that they are victims of the government’s machinations, of UMNO’s to be more specific. So I thought it would only be fair I hear Tajuddin out and then post his version of things on my blog.

Snubbed by Tajuddin

To my dismay, when I walked over to shake his hands, he waved me away in a “kasar” (rough) manner .I was stunned. Here was a man younger than me and behaving so “kurang ajar”. The only other occasion in recent times, someone treated me that way was that insolent DPP Zulqarnain during Rosli’s case. I saw the similarities between Tajuddin and that DPP Zulqarnain. Both are kurang ajar people.

I walked away and sat with my friends. Tajuddin Ramli has not changed. I have previously heard complaints about his dictatorial tantrums when he was Chairman of MAS. He treated the company’s assets as if they were his own. He flouted company’s internal policies with impunity. A retired general who was on the MAS Board of Directors was even forced to resign when that general pointed out about Tajuddin taking out money in batches of RM10 million fifteen times just to come within the financial authority limits without being detected. But the MAS Board found out.

Tajuddin behaved like a despot and mentioned Dr Mahathir’s name ever so often that nobody dared challenge him. Not even the then representative of the Ministry of Finance, Tan Sri Clifford Herbert, dared to go against Tajuddin. That is corporate Malaysia for you.

Not even the then representative of the Ministry of Finance, Tan Sri Clifford Herbert, dared to go against Tajuddin. That is corporate Malaysia for you.

Tajuddin thinks I don’t know of the things he did. I do, but I only raised his case in the context of how the criminal justice system has been manipulated. I raised it to show that in Malaysia it may not be the crook who gets charged. In Malaysia, it may be the other way round. That is why professionals like Dato’ Ramli and Lawyer Rosli can be fixed. It can be manipulated because people like Tajuddin can go scot free with arrogance. He remains unrepentant.