An emergency motion tabled by the opposition to debate the setting up of a royal commission to investigate financial scandals involving the government was shot down in the Dewan Rakyat today.

In rejecting the motion tabled by Parliamentary Opposition Leader Lim Kit Siang (DAP-Ipoh Timor), Speaker Ramli Ngah Talib said although the matter was of public importance, it was not urgent.

"The matter (business tycoon Tajudin Ramli's claim pertaining to Malaysia Airline shares) is pending in court, it is not appropriate for us to debate it in the House," he added.

Last Friday, Deputy Prime Minister Najib Abdul Razak also ruled out the need to set up the commission.

In his motion, Lim asked the cabinet to set up a royal commission of inquiry to probe the RM1.8 billion Tajudin-MAS bailout, RM30 billion Bank Negara forex losses and other mega financial scandals in the past two decades.

He also questioned if the Parliament and the nation had been misled over these cases.

'National service'

Tajudin, in an ongoing suit and countersuit between him and national management assets company Danaharta, revealed that he was directed by then premier Dr Mahathir Mohamad and second finance minister Daim Zainuddin to buy the ailing carrier shares in 1994.

The well-connected businessman claimed in court documents that he was asked to buy the shares as 'national service' after Bank Negara (which owned MAS shares then) suffered massive forex losses, due partly to speculation in foreign currency markets.

He purchased the controlling stake of 29 percent in MAS from Bank Negara, paying RM8 per share when the market price was round half that.

Tajudin reluctantly took out a RM1.8 billion loan for the purchase, pledging other companies he owned as collateral.

The loans became non-performing during the 1997 Asian financial crisis and were taken over by Danaharta, along with Tajudin's companies, including mobile provider Celcom, since acquired by state-owned Telekom Malaysia.

The government bought back the loss-making airline in 2000 in what was widely seen as a bailout for Tajudin, RM8 per share, again more than twice its market value at the time.

Select committee

However, Lim in his motion pointed out that Daim had on March 21, 2001 told Parliament that there was no special consideration given to Tajudin and added that RM8 per share was the best price possible in the interest of the nation.

The opposition leader's call for a royal commission was supported by various quarters.

Meanwhile, Transparency International (TI)-Malaysia Chapter president Ramon Navaratnam had urged the parliamentary select committee to probe the issue instead of setting up a royal commission.

Commenting on this, the select committee's head Bernard Dompok said he will discuss the suggestion with the committee members.

On the Tajudin-MAS bailout, he said the committee has no plans to look into it as the case is pending in court.