Pakatan: Reveal bankers fees for MAS-AirAsia deal

Pakatan Rakyat has urged the federal government to divulge the total fees paid to CIMB and other financial consultants involved in the botched Malaysia Airlines-AirAsia share-swap deal.

Although the deal eventually turned sour  , some bankers have raked in millions of ringgit because of exercise, the coalition’s common policy/manifesto committee said in a press statement today.

“We shall be asking in Parliament the total amount of fees and commissions paid to bankers, consultants and advisers in the pursuit of this extremely ill-conceived exercise,” the committee said.

NONEThe committee comprises PKR vice-president Nurul Izzah Anwar, PAS central committee member Dzukefly Ahmad and DAP central working committee member Liew Chin Tong.

On May 2, MAS and AirAsia separately announced that they were reversing the RM1.1 billion share-swap deal, but were exploring other avenues for cooperation.

The unwinding of the share swap will see Tune Air transfer its 20.5 percent stake in MAS back to Khazanah Nasional Bhd, while Khazanah will transfer its 10 percent stake in AirAsia to Tune Air.

‘Heads of two key persons involved must roll’

In the eight months since the deal was inked, the committee opined, MAS and its low-cost carrier Firefly bore most of the brunt as they were not able to explore new routes while AirAsia continued to do so.

“This merger and the presence of AirAsia’s shareholders on the board of directors had invariably prevented MAS from expanding into these fast growing markets/territories and were a clear case of conflict of interest,” said the committee.

NONEIt added that the deal also resulted in Firefly cutting routes, which would have an adverse economic impact.

Among the two chief culprits identified by the committee are Khazanah managing director Azman Mokhtar (left) and executive director Mohammed Rashdan Yusof, who it said should disengage themselves from MAS “before they inflict further damage”.

“Their earlier idea of the widespread asset unbundling exercise, for which they were handsomely paid, didn’t actually turn MAS around.

“Ten years later, Khazanah Nasional enters into this terrible share-swap arrangement to save MAS,” said the committee.

The share-swap deal was heavily criticised   by the 20,000-strong union of MAS workers, which claimed that AirAsia would influence MAS into shedding jobs and other cost-cutting measures to keep the troubled national airline afloat.

About these ads
This entry was posted in Corporate world, Pakatan Rakyat. Bookmark the permalink.