Danaharta-Tajuddin Ramli Out-Of-Court Settlement: Elements Of Frauds And Criminal Breach Of Fiduciary Duties Must Be Investigated Fully

While KEADILAN acknowledges the legal right of Danaharta and Tan Sri Tajuddin Ramli to settle out-of-court legal suits concerning a RM589 million debt incurred by the latter for his purchase of MAS shares, the authorities cannot ignore that there have been a series of police and MACC reports made against the former corporate figure.

He has been accused of masterminding various fraudulent transactions that constitute a serious breach of fiduciary and statutory duties that had partly contributed to MAS’ disadvantaged financial performance ever since his tenure at the national airlines. In particular, two police reports dated 4th January 2002 (Dang Wangi Report 347/02) and 4th May 2005 (Dang Wangi Report 12532/05) had been lodged by MAS to press for his accountability for the fraudulent transactions.

It is a known fact that MAS was a pride of the nation with RM600 million cash reserve when he took over in 1994, but ended up with accumulated losses of RM8 billion when he left in 2001. The financial burden inherited from the accumulated losses during his time continues to cash a shadow over MAS’ financial performance in spite of successive business turnaround plans implemented since his departure.

Partly as a result of the accumulated losses suffered, MAS had to enter the Comprehensive Collaboration Framework (CCF) with AirAsia that is deemed to be against the interest of the majority of the workers and other stakeholders in MAS.

In this context, the allegation of criminal frauds committed by Tan Sri Tajuddin Ramli is a serious national issue as it impacts the livelihood of tens of thousands ordinary Malaysians, whose hard work went down the drain because of the mismanagement of certain corporate captains deemed close to the ruling establishment. The authorities including PDRM and MACC must explain to the public why there has not been any action taken on Tan Sri Tajuddin Ramli in spite of clear evidence adduced against him. Worse, Dato’ Seri Najib Tun Razak’s continued silence on this issue dilutes further any notion that he is serious about combating graft in the country.

On top of this, Tan Sri Tajuddin Ramli’s claim that he was a proxy in the acquisition of MAS and acted under the instruction of the then Prime Minister Tun Mahathir Mohamad warrants an investigation of the highest urgency. The fact that agencies controlled by the government (including Danaharta and GLCs) chose to back down and reached an out-of-court settlement shrouded in secrecy will inevitably strengthen Tan Sri Tajuddin Ramli’s claim that he was indeed just a proxy.

If he was a proxy, who was then the real master who should be accountable for ruining the livelihood and economic future of tens of thousands of MAS employees?

 

MOHD RAFIZI RAMLI
Director of Strategy

YB WILLIAM LEONG
Treasurer and MP for Selayang

23 February 2012

 

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