Mahathir should direct that a police report be lodged to initiate investigations whether there had been deliberate misappropriation or mismanagmeent of public funds in the Daim decision for the RM1.79 billion government buyback  bailout of Tajudin Ramli's MAS stake at more than double the market price

(Petaling Jaya,  Wednesday): In his London talk on Sunday, the Prime Minister, Datuk Seri Dr. Mahathir Mohamad said that his government would not tolerate any deliberate misappropriation of funds or mismanagement, "crony or otherwise".  

As proof of the seriousness of his statement, Mahathir should direct that a police report be lodged to initiate investigations whether there had been deliberate misappropriation or mismanagement of public funds in the decision taken by Tun Daim Zainuddin when he was Finance Minister in the buyback  bailout of Tan Sri Tajudin Ramli's 29.09% stake in MAS  at RM8 a share when the market price was only RM3.68.  

Mahathir must declare that he would allow  the police to investigate whether there had been any deliberate misappropriation or mismanagement public funds  in the RM1.79 government billion buyout bailout of Tajudin's MAS stake, and  let the Attorney-General to decide  whether there is a case for prosecution, on three important grounds: 

• There was no independent professional valuation before the government decision on the outrageous buyout bailout of Tajudin's MAS stake at the ridiculous price of RM8 a share when the market price was only RM3.68; 
• Breach of the government’s bail-out guideline to impose  “appropriate haircuts”, which was not only waived but a  bonanza at taxpayers’ expense was awarded to Tajudin for his mismanagement of MAS transforming the exercise into a personal rescue for Tajudin instead of a public rescue for MAS.    
• Either  Cabinet  and/or  Parliament and the nation  had been misled in not being informed  that the RM1.79 billion buyout bailout, which already saddled Malaysians with the RM9.4 billion MAS debts,  would only be the first of a series of government bailouts of the national airline to make it viable, as in the latest RM6.1 billion MAS restructuring exercise which is nothing more than another MAS bailout at taxpayers' expense.  

It is clear that in the RM1.79 billion buy-out bail-out of Tajudin's MAS shares, there was not only total lack of transparency and accountability, there was a serious violation of the government's guidelines for bailouts where Tajudin was not only  spared from having to take "appropriate hair-cuts", the Malaysian taxpayers have been required to take repeated "haircuts" to try to put the national airline back on track to profitability.  

If this is not "deliberate misappropriation or mismanagmenet of public funds", then Malaysians will be at a total loss as to to their actual definition! 

As Mahathir has declared total lack of tolerance for deliberate misappropriation or mismanagement of public funds, the outrageous  RM1.79 billion government  buyout bailout of Tajudin' MAS stake is one acid test.  

Any Malaysian can lodge a police report to ask for investigations into possible  criminal wrongdoings in the RM1.79 billion MAS buyout bailout, but as the Prime Minister had made his policy statement of no tolerance for any deliberate misappropriation or mismanagement of public funds, it would be more appropriate for such a polic report to emanate from the government. 

Alternatively, Parliament when it meets in a fortnight's time should adopt an unanimous motion to ask the police to investigate, and the Attorney-General to decide, whether criminal prosecutions could be initiated for any deliberate misappropriation or mismanagement of public funds in the RM1.79 billion government buyout bailout of Tajudin's MAS stake at more than double the market price.

(27/2/2002)