Media statement by Tony Pua Kiam Wee in Kuala Lumpur on Thursday, 24^th May 2012:

PM must confirm UMNO Youth Chief's claim that the Government did not lose RM589 million to Tan Sri Tajuddin Ramli

Rembau MP Khairy Jamaluddin has claimed in his debate with PKR Director fo Strategy Rafizi Ramli 2 days ago that he is "certain that Danaharta didn't incur losses in the Tan Sri Tajudin Ramli case".

In fact, the Umno Youth chief cited "sources" claimed that Tajudin may have even paid more than the amount owing, as a result of the undisclosed out-of-court settlement.

"We don't know the outcome as it was done out of court. (The opposition) says Tajuddin need not pay, but they don't say that maybe the settlement involved paying part of the debt or maybe more than the RM500 million owed."

Khairy's claim is completely unbelievable and lacks all credibility given the clandestine manner in which the Government has sought to cover up the entire episode and the refusal of any Minister to confirm or deny the claim that Danaharta had in fact written off all Tajuddin's debt.

Datuk Seri Nazri Aziz, Minister in the Prime Minister's Office had in November last year directed all Government-Linked Companies (GLCs) to withdraw all civil suits against former MAS owner and chairman, Tan Sri Tajuddin Ramli. He wrote that "the government of Malaysia and the Finance Ministry has agreed to settle all civil claims against Tan Sri Tajuddin Ramli and others to be withdrawn immediately in view of the fact that the government and the Finance Ministry have agreed that the said cases will be settled out of court."

The High Court had in December 2009 rule in favour of Danaharta and its two subsidiaries on the on the full amount outstanding - RM589.15 million - and had ordered Tajudin to pay an interest of 2% above the base lending rate of Malayan Banking Bhd until the date of full realisation. The Court had also dismissed Tajudin's counterclaim to the tune of over RM14 billion excluding damages and cost.

Danaharta's claims are based on the claims that Tajudin had defaulted on a syndicated loan of RM1.792 billion, which he took in 1994 to acquire the Government's 32% stake in Malaysian Airlines System (MAS).

Rafizi has rightly sniped that Khairy seems to be answering "as if he is Tajudin's lawyer" when even Cabinet Ministers were unable and unwilling to provide straight answers.

The Prime Minister and Finance Minister, Datuk Seri Najib Razak must immediately confirm if indeed his UMNO Youth Chief is telling the truth or is lying to the public over the above scandal. This is especially since it is the first time a BN politician has claimed that Tan Sri Tajuddin paid part or all of his outstanding debt as part of the settlement exercise.

If not, it will only prove that there is a conspiracy to cover up the fact that Danaharta has in effect written off the debt in order to protect BN's long-time cronies. It will be clear that under Najib's administration, the cronies' interests will be protected at all cost, at the expense of ordinary Malaysians.

* Tony Pua Kiam Wee, DAP National Publicity Secretary & MP for Petaling Jaya Utara