'Tajudin-GLC settlement an abuse of power'

The lack of transparency in last week's settlement in court between former Malaysia Airlines System chairperson Tajudin Ramli and government-linked corporations (GLCs) does not augur well for Malaysia's standing, domestically and internationally.

Transparency International Malaysia chapter chairperson Paul Low said the case indicated blatant abuses of power and a lack of prudency in the managing of the country's finances, resulting in losses of public funds.

Low also warned that following the court settlement, Malaysia's aspiration of having good governance has also come under scrutiny.

"His (Tajudin's) claim that the government (through the assurance given by the then prime minister and minister of finance) had indemnified him of any liability incurred in his purchase of the MAS shares from Bank Negara needed to be substantiated and disclosed by the institutions and the ministers concerned.

"We are extremely concerned as to the lack of public disclosure of the reasons for what seems to be a 'arbitrary write-off' of the RM589 million loan owed by Tajudin relating to his purchase of MAS shares," Low told Malaysiakini.

The Kuala Lumpur High Court had on Dec 7, 2009, ordered Tajudinto pay RM589 million to Pengurusan Danaharta Nasional Bhd, which manages unpaid loans. The same court had earlier dismissed Tajudin's RM13 billion counter-claim.

Last Tuesday, Tajudin withdrewhis appeal against Danaharta and other GLCs over the High Court decision.

The same day, Tajudin also withdrew his lawsuit against numerous other litigants, including Telekom Malaysia Bhd, Naluri Corporation, Celcom (M) Bhd, Atlan Holding Bhd and CIMB Group.

Petaling Jaya MP Tony Pua has claimed that according to his sources, the RM589 claim has been written off as part of the settlement.

Blatant abuse of power

Low said said the court settlement indicated a blatant abuse of power and a lack of prudency in the stewardship of the country's finances, resulting in substantial losses of public funds.

"In view of the inconsistencies , from the explanations of the personalities involved, a public clarification needs to be done by the government," he said.

"As the case involves a public listed company and GLCs, the opaqueness of the settlement will not augur well for Malaysia's standing in the investing community, domestically as well as internationally.

"It shows a lack of consistency and seriousness in tackling corruption (defined as the abuse of entrusted power for person gains) at the higher echelon of the administration."

Low pointed out that Malaysia's aspiration to become a high-income economy would be impaired if public administration continued to lack good governance, accountability and public disclosure.