MAS’s RM6 billion to bail out ‘rogues and criminals’, says PAS

PAS party information chief Mahfuz Omar (centre) speaks during a press conference at the Pan-Malaysian Islamic (PAS) party's headquarters in Kuala Lumpur today. – The Malaysian Insider pic by Najjua Zulkefli, September 2, 2014.

PAS has questioned the RM6 billion Malaysia Airlines turnaround plan, describing the sum as a bailout and not an “investment” as said by the prime minister.

Given MAS’s worsening losses over the years, PAS said the bailout was for those who had abused their power in the national carrier.

Party information chief Datuk Mahfuz Omar said the government had previously given MAS an RM10 billion boost but this had failed to stem the airline’s losses.

"Prime Minister Datuk Seri Najib Razak said the RM6 billion was not a bailout of the national carrier but an investment which would eventually be repaid.

"So the previous monies which had been given to Malaysia Airlines which amounted to more than RM6 billion were also considered good investments?" Mahfuz asked.

"Malaysia Airlines, Khazanah and Malaysia have never received good returns on what Najib previously described as investments."

Mahfuz said as far as he was concerned, the RM6 billion announced by state investment vehicle Khazanah Nasional Berhad last week was a bailout for MAS to rescue “criminals” working in the national carrier.

"RM6 billion of taxpayers’ funds has been allocated for criminals, for the abuse of power and for rogues in the national carrier, including political leaders."

Mahfuz was speaking at a press conference held at the PAS headquarters in Kuala Lumpur today.

Last week, Najib described the RM6 billion as an investment rather than an attempt to save the ailing airline. Khazanah managing director Tan Sri Azman Mokhtar, too, said the sum was not a bailout and could be recovered.

Najib had said MAS may need more than three years for the restructuring plan to be completed, but that there would be positive growth within that period.

“The money has been injected into MAS and we have decided that the RM6 billion must be regained. It is not a bailout. A bailout is when it cannot be regained.

“Khazanah will get back every sen from that RM6 billion. This is an investment. Not a bailout,” Najib had said after chairing the Umno supreme council meeting at the Putra World Trade Centre.

Six thousand jobs will be cut at the national carrier which lost at least RM3 million a day for the first half of the current financial year.

The state fund, which currently has a 69% stake in the carrier, has injected more than RM5 billion into MAS over the last ten years.

On Thursday, MAS said its second-quarter nett loss widened to RM307 million from RM176 million in 2013, though the result was an improvement from the nett loss of RM443 million in the first quarter.

MAS warned of poor second-half earnings as passenger bookings continued to fall, with business hit by the shooting down of flight MH17 over Ukraine in July and the still unexplained disappearance of flight MH370 in March.

- TMI