A DAP MP has expressed concern that the proposed privatisation of Malaysian Airline System (MAS) will only encourage “crony capitalists” to plunder what is left of the ailing national carrier.

Bukit Mertajam MP Steven Sim (right) said that there were already indicators that “corporate vultures” were waiting to ravage what is left of the company with the excuse of rebuilding MAS.

He said this in his speech, sent to the media, which he had intended to deliver to Parliament yesterday during the special session on MH17. He was, however, cut off by deputy speaker Ismail Mohamed Said who felt the topic was unrelated to the July 17 tragedy.

Sim further reminded how MAS had been privatised before in the 1990s, where businessperson Tajuddin Ramli was given RM1.79 billion loan to purchase a 32 per cent share in the airlines as part of the larger privatisation policy by former prime minister Dr Mahathir Mohamad.

“However, the government later had to bailout Tajuddin by buying up his shares with the same price of RM1.79 billion, that is RM8 per share compared to the price of MAS shares at that time, RM3.68 per share."

Sim further cautioned that a Proton-MV Augusta scandal may repeat with the privatisation of MAS.

In 2005, Proton had sold Italian motorcycle manufacturer MV Augusta, which it originally acquired for RM368 million, for only one Euro.

Following the sale, Mahathir himself revealed that two companies, BMW and Harley-Davidson subsequently bought over MV Augusta from the new owner for a total sum of RM800 million.

Yet, Sim admitted MAS needs to be revamped, but said changes should be made on the management front.

Citing allegations of bad management by senior executives of the company by the MAS Employees’ Union (Maseu), Sim stressed that any revamp must involve a thorough corporate restructuring, especially those of senior management.

“The government must not appoint inexperienced officers to run MAS. Political appointment and cronyism must be abolished completely,” he stressed.

Recently, it was reported that the national flag carrier faces the prospect of being delisted from Bursa Malaysia following the shooting down on Flight MH17 in eastern Ukraine, the second tragedy to hit the airline since the disappearance of MH370 in March.


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