GLCs caught in a dilemma over Tajudin
Hafiz YatimPublished: Aug 16, 2011 9:38 AM | Updated: Aug 26, 2011 8:41 AM
It seems embattled tycoon Tajudin Ramli and Umno lawyer Mohd Hafarizam Harun are the only individuals privy to the terms of the global settlement in the long-standing multi-billion ringgit dispute between the former Malaysia Airlines chairperson and the government-linked corporations involved.
It seems embattled tycoon Tajudin Ramli and Umno lawyer Mohd Hafarizam Harun are the only individuals privy to the terms of the global settlement in the long-standing multi-billion ringgit dispute between the former Malaysia Airlines chairperson and the government-linked corporations involved.
The global settlement has been mentioned several times but was never disclosed since last October, when Tajudin's lawyer Lim Kean Leong sought adjournments to the on-going cases brought to the Court of Appeal.
However, none of the lawyers for the affected GLCs have been informed about the terms of settlement, nor who Tajudin was negotiating with.
The issue came to light when Minister in the Prime Minister's Department Nazri Abdul Aziz (right) said he was given the mandate to deal "with the matter" after getting the go-ahead from Second Finance Minister Ahmad Husni Hanadzlah.
Tajuddin, who faces allegations of causing MAS to suffer massive losses when he was at the helm of the national carrier, is being slapped with a litany of legal actions by the GLCs seeking to recover the billion-ringgit debts he owes them.
It is learnt that a meeting to discuss the matter was held late yesterday evening, between the government's investment arm Khazanah Nasional Bhd and the GLCs involved.
The meeting saw representatives from Khazanah, Telekom Malaysia, Celcom, MAS and CIMB in attendance at a session called by Khazanah's legal head Md Nasri Sallehuddin.
It came a week after Nazri issued a controversial letter stating that the government and Finance Ministry had agreed to settle the dispute with Tajuddin.
According to Nazri, the strategic industries that have cases against Tajudin (left) must appoint law firm Hafarizam Wan Aishah Mubarak, a firm closely linked to Umno, to represent them.
Terms only to be revealed if law firm hired
At yesterday's meeting, the GLCs were informed that the terms of the global settlement would be disclosed to them only if they agreed to appoint Hafarizam as their lawyer.
This raised a number of concerns as it would flout many ethical, transparency and corporate governance issues, which are matters crucial in the running of public-listed companies.
Hafarizam (right), when contacted by Malaysiakini through SMS, refused to divulge details of the meeting, saying that the question should be posed to Khazanah.
"I cannot say anything as yet since I'm not officially appointed by the GLCs. Best we wait, and time for the GLCs to sort it out at their end. I am staying put for formal instructions to come from the GLCs," he said when asked about the meeting.
Malaysiakini reported on Sunday on a proposed meeting to be called by Khazanah, which holds the golden share option for the government.
However, Khazanah's role in the whole affair as the golden shareholder could also come under scrutiny as sources indicated it cannot dictate to the board of directors of the GLCs to withdraw the suits, to settle the claim or change solicitors midway in a settlement.
As indicated by Bar Council chairperson Lim Chee Wee to Malaysiakini last Saturday, a golden shareholder has a limited role.
Mounting pressure on GLCs
Following the latest development, an immediate question is why the global settlement comes with the condition that Hafarizam be appointed and not Tajudin's lawyer Lim Kian Leong, who has been handling this dispute.
Lim, when contacted, declined comment on the matter, saying he was yet to obtain instructions from his client.
Another question is how can Putrajaya-based Hafarizam Wan Aishah Mubarak impose a condition on the GLCs - that either they appoint the firm - or remain ignorant about the proposed global settlement.
The GLC are facing additional pressure with Bursa Malaysia expecting them as public-listed corporations to come up with an announcement following flaks that such a proposed settlement should be followed by a public announcement.
Petaling Jaya MP Tony Pua had yesterday urged the Securities Commission (SC) to reprimand GLCs listed on Bursa Malaysia for failing to disclose material developments in their civil litigation against Tajudin.
It is learnt the GLCs may issue a statement to Bursa Malaysia on the controversy as early as today, before business closes for the day, or in the coming days.
MAS, Telekom, Axiata did not get proposals from Tajudin
The global settlement has been mentioned several times but was never disclosed since last October, when Tajudin's lawyer Lim Kean Leong sought adjournments to the on-going cases brought to the Court of Appeal.
However, none of the lawyers for the affected GLCs have been informed about the terms of settlement, nor who Tajudin was negotiating with.The issue came to light when Minister in the Prime Minister's Department Nazri Abdul Aziz (right) said he was given the mandate to deal "with the matter" after getting the go-ahead from Second Finance Minister Ahmad Husni Hanadzlah.
Tajuddin, who faces allegations of causing MAS to suffer massive losses when he was at the helm of the national carrier, is being slapped with a litany of legal actions by the GLCs seeking to recover the billion-ringgit debts he owes them.
It is learnt that a meeting to discuss the matter was held late yesterday evening, between the government's investment arm Khazanah Nasional Bhd and the GLCs involved.
The meeting saw representatives from Khazanah, Telekom Malaysia, Celcom, MAS and CIMB in attendance at a session called by Khazanah's legal head Md Nasri Sallehuddin.It came a week after Nazri issued a controversial letter stating that the government and Finance Ministry had agreed to settle the dispute with Tajuddin.
According to Nazri, the strategic industries that have cases against Tajudin (left) must appoint law firm Hafarizam Wan Aishah Mubarak, a firm closely linked to Umno, to represent them.
Terms only to be revealed if law firm hired
At yesterday's meeting, the GLCs were informed that the terms of the global settlement would be disclosed to them only if they agreed to appoint Hafarizam as their lawyer.
This raised a number of concerns as it would flout many ethical, transparency and corporate governance issues, which are matters crucial in the running of public-listed companies.
Hafarizam (right), when contacted by Malaysiakini through SMS, refused to divulge details of the meeting, saying that the question should be posed to Khazanah."I cannot say anything as yet since I'm not officially appointed by the GLCs. Best we wait, and time for the GLCs to sort it out at their end. I am staying put for formal instructions to come from the GLCs," he said when asked about the meeting.
Malaysiakini reported on Sunday on a proposed meeting to be called by Khazanah, which holds the golden share option for the government.
However, Khazanah's role in the whole affair as the golden shareholder could also come under scrutiny as sources indicated it cannot dictate to the board of directors of the GLCs to withdraw the suits, to settle the claim or change solicitors midway in a settlement.
As indicated by Bar Council chairperson Lim Chee Wee to Malaysiakini last Saturday, a golden shareholder has a limited role.
Mounting pressure on GLCs
Following the latest development, an immediate question is why the global settlement comes with the condition that Hafarizam be appointed and not Tajudin's lawyer Lim Kian Leong, who has been handling this dispute.
Lim, when contacted, declined comment on the matter, saying he was yet to obtain instructions from his client.
Another question is how can Putrajaya-based Hafarizam Wan Aishah Mubarak impose a condition on the GLCs - that either they appoint the firm - or remain ignorant about the proposed global settlement.
The GLC are facing additional pressure with Bursa Malaysia expecting them as public-listed corporations to come up with an announcement following flaks that such a proposed settlement should be followed by a public announcement.
Petaling Jaya MP Tony Pua had yesterday urged the Securities Commission (SC) to reprimand GLCs listed on Bursa Malaysia for failing to disclose material developments in their civil litigation against Tajudin.
It is learnt the GLCs may issue a statement to Bursa Malaysia on the controversy as early as today, before business closes for the day, or in the coming days.
MAS, Telekom, Axiata did not get proposals from Tajudin
View Comments0