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Monday, October 23, 2017

Why does Mavcom consist of ex-MAS top guns, asks DAP



PARLIAMENT | A DAP lawmaker today questioned the composition of the Malaysian Aviation Commission (Mavcom), whose senior management mostly consists of former Malaysia Airlines (MAS) and Khazanah Nasional Bhd top representatives.
Debating the Malaysian Aviation Commission (Amendment) Bill (Mavcom Bill) during its second reading in Parliament today, Julian Tan Kok Ping (DAP-Stampin) pointed out how Mavcom chief operating officer Azmir Zain was director of investments at Khazanah, while its aviation development director Germal Singh Khera was senior vice-president of international and government affairs with MAS.
Mavcom's director of consumer affairs Pushpalatha Subramaniam, meanwhile, used to be MAS’ consumer affairs senior vice-president, while the commission’s director of economics Wan Khatina Nawawi used to be Khazanah's research director.
"All (senior) management from Mavcom are from MAS. How can all of Mavcom's senior management come from MAS when their role is to supervise the whole airline industry in Malaysia?" asked Tan, suggesting that it was a clear conflict of interest.
"The trust we are giving to Mavcom now...can it be trusted?"


Commenting on several air routes which had purportedly been cancelled, Tan (photo) also wondered whether Mavcom was protecting MAS in the matter.
"This would be a stumbling block for aviation entrepreneurs and will lead to cronyism.
"Mavcom is supposed to ensure fair competition, but the opposite has happened, as in the case of Malaysia Airports Holdings Bhd (MAHB).
Hitting out at MAHB, Tan claimed that it could abuse its powers as "they are not accountable to anyone," and expressed concern that the commission could be "politically influenced."
"(Because) the politics behind them is strong.
"This is going to be another monster that is going to kill the aviation industry in Malaysia," he added.
The lawmaker had earlier cited the appointment of Mavcom commissioners under Section 5 of the Mavcom Act 2015, pointing out how the executive chairperson is appointed by the prime minister.
The commission must also consist of two representatives from the federal government, while the four to six remaining members are appointed by the transport minister after consultation with the prime minister.
"I'm afraid that Mavcom is being used as a political machinery in which the powerful ones in Mavcom are politically affiliated.
"With such powers, it will open windows of opportunity for abuse of power by Mavcom when it is supposed to protect the aviation industry.
"(Now) what Mavcom needs to do is to protect industry players from Mavcom."


Deputy Transport Minister Abdul Aziz Kaprawi (photo) did not address Tan's concerns specifically in Parliament, as the bill will continue to be debated tomorrow, but insisted that Mavcom was an "independent body."
"This is a game changer, that's why the government founded Mavcom so the industry can be regulated by an independent body," he said.
The government is seeking to collect regulatory service charges on airport passengers through the amendment bill. The service charge is expected to be RM1.

The amendment bill, which expands Mavcom's powers, was tabled for its first reading in Parliament during the last parliamentary session.
Under the bill, Mavcom will also be given the power to issue guidelines, circulars, directives and practice notes.
Mavcom was set up in March of 2016 to regulate economic and commercial matters related to civil aviation.- Mkini

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