A Malaysia Airlines (MAS) shareholder is seeking a declaration that the national carrier and its Bangladesh-incorporated forwarding agent, co-owned by a prominent local parliamentarian, are clear of fraudulent shipments.

The originating summons naming Shah Alam MP Mohd Zin Mohamed and MAS as first and second respondents respectively, was filed at the Kuala Lumpur High Court today.

The applicant, Jeyapalan Mahesan (photo), asked the court to determine whether there was a "deliberate and continued non-compliance" with existing cargo shipment procedures.

He said an affirmative finding would mean that MAS was in breach of the Carriage of Goods by Air Act, thus placing all its aircraft in danger when airborne.

'Pay-offs'

He also wanted the court to determine if Mohd Zin had misrepresented himself as chairperson and owner of Silkways Cargo Services Ltd when he was not registered as such in Bangladesh.

The High Court was also asked to declare whether Mohd Zin (photo) had abused his position in the transactions.

In April, MAS launched an internal probe into a police report alleging fraudulent handling of its cargo business through insiders in Dhaka, and subsequently denied the claim.

Jeyapalan said he had been dealing with MAS since last year in his capacity as general counsel to airfreight forwarders before purchasing some shares in order to probe the matter.

Under-declaring weight

"As (MAS) is Malaysia's national carrier and a public-listed company, I brought this matter to the attention of the Seputeh MP (Teresa Kok)," he added.

In the originating summons, he stated that based on the documents and evidence, Mohd Zin had been under-declaring the airway bill, a primary document for cargo shipments, especially outbound from Bangladesh.

"This practice simply means (that) when goods are loaded onto each aircraft, the actual weightage will never be the same as the declared figure.

"The pilot (then) sets the flight details (and) instruments based on the declared weightage. The differential will place the aircraft in a dangerous situation constantly," he explained.

Jeyapalan said the under-declaration also meant that MAS was losing "monies perpetually", estimated to be more than RM4 million over a period of three years.

He claimed Mohd Zin had misrepresented himself as chairperson/director and shareholder of Silkways.

Side agreement

Jeyapalan also alleged that a "side agreement" existed between the parliamentarian and Silkways.

The originating summons also wanted the court to determine if any foreign exchange laws of Malaysia have been breached by the parties concerned.

Jeyapalan said in response to the police reports and Kok's briefing on the matter, Mohd Zin had initiated defamation proceedings through lawyers in Bangladesh against his opposition counterpart.

He argued that Mohd Zin, with MAS' active participation, was depriving the carrier's shareholders of gains, exposed MAS aircraft to the danger of crashing and breached international and domestic laws.

A senior MAS employee who first exposed the alleged shady dealings through a police report is now facing a domestic enquiry.

In a press statement, Kok (photo, left) said she has received a legal notice for defamation to the sum of US$ 60 million.

"All documents and evidence have been properly obtained, verified and confirmed as being true and correct. We have (also) been in touch with various parties in Bangladesh on this."

Kok said she had also previously raised the matter involving Silkways, which handles inbound and outbound passengers and cargo to Bangladesh, to the public.

"Once legal action starts, this matter will be brought to the attention of the authorities and people in Bangladesh."