Isnin, 15 Ogos 2011

Philosophy Politics Economics

Philosophy Politics Economics


Tajuddin Bailout: Securities Commission Must Reprimand GLCs

Posted: 15 Aug 2011 10:35 AM PDT

Despite the nationwide furore over the directive given by Minister in Prime Minister's Department, Datuk Seri Nazri Aziz to all Government Linked Companies (GLCs) to withdraw from civil suits against Tan Sri Tajuddin Ramli, none of the GLCs which are listed on Bursa Malaysia have made any public announcement over the matter.

According to The Malaysian Insider, the directive from the Nazri, who claimed to have the mandate of the Government said that:
This is to inform you that the government of Malaysia and the Finance Ministry has agreed to settle all civil claims against Tan Sri Dato Tajuddin Ramli and others to be withdrawn immediately in view of the fact that the government and the Finance Ministry have agreed that the said cases will be settled out of court… For your information the government has given me the mandate to act for the government in this matter.
Nazri's letter also directed the lawyers acting for the GLCs and Danaharta to hand over their cases to the firm of Hasfarizam Wan and Aisha Mubarak, a well-known UMNO lawyer.

Such a directive from the Minister dated 8th August to public-listed entities should have been immediately disclosed on Bursa Malaysia as the litigations involved billions of ringgit in claims and counter-claims which are surely "material" to finances of these companies.

The Board of Directors of these companies must also immediately state their immediate position vis-à-vis the letter from Nazri to allow investors, particularly the minority shareholders to weigh their investment options.

The listed companies involved include Telekom Malaysia Bhd, Axiata Group Bhd, CIMB Bank Bhd, Atlan Holdings Bhd and Malaysia Airlines Bhd (MAS). None of these companies have issued any announcements pertaining to the matter as at the time this statement is issued, nearly a week after the government directive was given.

The failure to disclose material developments on a timely basis may subject the company and/or its director and officers to penalties under the Listing Requirements and the Securities Industry Act, including a fine not exceeding M$1 million, a suspension of trading of the company's securities; and/or the delisting of its securities.

The Securities Commission (SC) must act without fear or favour and reprimand these listed companies for failing to make the necessary disclosures to protect the public and shareholder's rights. SC must also require these companies to publish the Government's directive in full to ensure that investors are not confused by "hearsay" over the exact content of the letter.

The blatant interference by the Government will also rock investors' confidence in our stock markets as it becomes questionable if the Board of Directors will act in the best interest of these companies, or will be nudged to comply with arbitrary government decrees.

SC which has worked hard over the years to improve Malaysia's reputation for poor corporate governance since the Asian financial crisis especially over the then RM3.2 billion bail out of Tan Sri Halim Saad, must not allow this incident to reverse the progress it has achieved.

Tajuddin Bailout: Gross Negligence by Najib & Nazri

Posted: 14 Aug 2011 11:43 PM PDT

The Prime Minister Datuk Seri Najib Abdul Razak and Minister in Prime Minister's Department must be warned that they could be sued for gross negligence in the carrying out of their duties by directing Government Linked Comanies (GLCs) to withdraw all civil suits against former MAS Chairman Tan Sri Tajuddin Ramli.

Should the civil suits be withdrawn before a satisfactory settlement is achieved, and if a settlement could not be achieved subsequently, there will no longer be any recourse for these GLCs to reclaim the debts outstanding or damages and compensation from Tajuddin.

This is because they would not be able to continue with the existing suit against Tajuddin once they are withdrawn. At the same time, because the claims were for actions which occurred more than 6 years ago, the GLCs will not be able to initiate new legal actions against Tajuddin as it would be time-barred.

It would mean that Tajuddin will get away scot free without having to pay a single sen for his billions of ringgit in debt as well as any compensation for damages he may have caused to the various GLCs, especially MAS through negligence, abuse or maladministration.

Tajuddin who is well-advised, would have little or no incentive at all to "settle" any of the outstanding sums or claims once the suits are withdrawn. This is unless of course, the intended "settlement" is not with the GLCs but a clandestine "off-site" solution with Najib, as suggested by the latter.

What assurance can Najib or Nazri give to Malaysian tax-payers that their monies will be well-protected and that Tajuddin will indeed pay off the bulk, if not all of his debt to the Government and GLCs? If no assurance can be given, one can only conclude that the Ministers have been reckless and grossly negligent intentionally or otherwise, in decreeing the withdrawal of civil suits against Tajuddin, knowing full well that the latter is in all likelihood going to get away scot free.

If the current Attorney-General is unwilling to consider the above action against the Prime Minister due to the complete lack of independence of the former's office, Najib can be assured that full, open and transparent investigations will be carried out by the Pakatan Rakyat government against his misdeeds should we secure victory in the next General Election. This is to ensure that those who have knowingly and negligently caused losses to the Government's coffers will be held accountable and will not be let off unpunished.

In the meantime, Nazri must immediately withdraw his directive to GLCs to ensure that the rakyat's interest can be fully protected by the respective Board of Directors and the legal advisors they have entrusted with the legal suits.

Tiada ulasan:

Nuffnang