Putrajaya directs GLCs, Danaharta to drop all claims against Tajuddin Ramli but Tajuddin can sue anyone he pleases

[Raymund Yeoh 1]

 

Putrajaya directs GLCs, Danaharta to drop all claims against Tajuddin Ramli

By Leslie Lau

Executive EditorAugust 11, 2011 Tajuddin flew high in the 1990s. — Picture courtesy of mykedah.comKUALA LUMPUR, Aug 11 — Putrajaya has directed all government-linked companies, including Malaysia Airlines, and the national debt restructuring company Danaharta, to cease all civil suits against Tan Sri Tajuddin Ramli, the former chairman of the national carrier and protege of Tun Daim Zainuddin, according to documents obtained by The Malaysian Insider. In a letter sent this month to the GLCs and Danaharta by Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz, the GLCs and Danaharta were informed that the Finance Ministry had agreed to settle all outstanding civil suits against Tajuddin, a poster boy of Tun Dr Mahathir Mohamad’s plan to groom Bumiputera entrepreneurs.

 

“This is to inform you that the government of Malaysia and the Finance Ministry has agreed to settle all civil claims against Tan Sri Dato Tajuddin Ramli and others to be withdrawn immediately in view of the fact that the government and the Finance Ministry have agreed that the said cases will be settled out of court.

 

“For your information the government has given me the mandate to act for the government in this matter,” Nazri said in the letter sighted by The Malaysian Insider.

 

At least one government agency is expected to withdraw its claims against Tajudin in court today.

 

Nazri’s letter also directs the lawyers acting for the GLCs and Danaharta to hand over their cases to the firm of Hasfarizam Wan and Aisha Mubarak, a known Umno lawyer.

 

But the minister made no mention of the terms of settlement with Tajuddin.

 

Tajuddin was a protege of Daim, the close friend of Dr Mahathir and ex-finance minister who was the architect of the now discredited policy of nurturing a class of Malay corporate captains on government largesse.

 

Individuals such as Tajuddin, Tan Sri Halim Saad and others flew high in the 1990s but their true mettle was tested during the Asian financial crisis. Nearly all of them fared poorly.

 

The Najib government’s move to settle all outstanding claims against Tajuddin appears to be an attempt to wipe the slate clean in a financial saga that goes back decades to the height of Dr Mahathir’s administration.

 

First police report in 2002

 

MAS had first lodged a police report against Tajuddin in 2002 for allegedly causing the flag carrier to suffer losses in excess of RM8 billion. Tajuddin was the executive chairman of the airline from 1994 to 2001.

 

According to a report to the Malaysian Anti-Corruption Commission (MACC), a major contributor to the record losses under Tajuddin was the relocation of MAS’s cargo operation in Amsterdam and Frankfurt to a single hub in Hahn, Germany, where the airline was forced to enter into a disadvantageous aircraft lease contract with a company, which was later linked to Tajuddin’s family.

 

The new cargo hub operation had caused MAS to suffer losses of between RM10 million and RM16 million a month before the project was terminated after the government regained control of MAS in 2001.

 

The termination resulted in a RM300 million arbitration claim against MAS by the company.

 

MAS has had a turbulent past decade after the government bought back the airline from the former corporate high-flyer at RM8 per share or about double the market price at the time.

 

The airline was at the time saddled with a debt reported to be RM9.5 billion.

 

It then had its books cleaned up in 2002 under the wide asset unbundling (WAU) exercise that was engineered by the BinaFikir consultancy, then led by Tan Sri Azman Mokhtar.

 

In 2009, Danaharta and two of its subsidiaries won a RM589.143 million suit against Tajuddin. The case arose after the tycoon executed a facility agreement on July 13, 1994 to borrow RM1.792 billion from a group of syndicated lenders to finance the purchase by him of a 32 per cent stake in MAS.

 

However, from 1994 to 1998, he failed to service the original loan, causing it to become a non-performing loan (NPL).

 

 

 

Daim was the architect of the now discredited policy of nurturing a class of Malay corporate captains on government largesse. — File picIn 1998, Danaharta acquired the NPL from the lenders but Tajuddin also failed to settle his debts to Danaharta until it was in default of RM1.41 billion as at Oct 8, 2001.

 

As part of a settlement agreement, Tajuddin was to pay RM942 million in four instalments over three years and that he was permitted to redeem his charged shares at a minimum price per share.

 

Tajuddin, however, defaulted in the payment of the quarterly interest payable under the settlement agreement and on April 27, 2002, the plaintiffs terminated the settlement agreement and demanded RM1.61 billion from him.

 

On April 29, 2002, Danaharta, together with its subsidiaries Danaharta Urus Sdn Bhd and Danaharta Managers Sdn Bhd, sold part of the charged shares consisting entirely of Technology Resources Industries (TRI) shares at RM2.75 per share, resulting in total proceeds of RM717.39 million.

 

As at December 31, 2005, the amount outstanding was RM589.14 million and on May 11, 2006, Danaharta and the subsidiaries commenced action to recover the money.

 

Tajuddin alleged, in his affidavit, that he was directed by Dr Mahathir and Daim in 1994 to buy a controlling stake in Malaysia Airlines to bail out the government.

 

Forced “national service”

 

Tajuddin claimed that his purchase was a forced “national service”, disguised as an arm’s length commercial deal, because the government wanted to appease the investment community and the public.

 

Dr Mahathir denied in his autobiography published this March that he and Daim had forced Tajuddin to bail out MAS in 1994 for RM1.8 billion.

 

Instead, Tajuddin was “elated over his purchase” of the national carrier, the former prime minister said in the book titled “A Doctor in the House: The Memoirs of Tun Dr Mahathir Mohamad”.

 

“Recently Tajuddin accused me and Tun Daim of forcing him to buy shares and a controlling interest in MAS. I have checked newspaper reports of the time. Far from feeling coerced, it is obvious that Tajuddin was elated over his purchase.

 

“He wanted to swap his Malaysian Helicopter shares (a company with two aircraft) for MAS shares (a company with well over 60 aircraft). The government rejected his plan and asked that he pay in cash instead, which forced him to borrow RM1.8 billion.

 

“He was therefore not coerced by the government to buy the shares, but was forced by his own modest collateral to borrow heavily,” Dr Mahathir wrote.

 

Tajuddin had claimed that Dr Mahathir and Daim had forced him to buy a 32 per cent stake in MAS from Bank Negara at RM8 per share instead of the market price of RM3.50 to bail out the central bank which was hit by multi-billion ringgit foreign exchange losses.

 

Tajuddin had said that he did not want to buy the MAS stake as he was worried about financial losses but agreed to do it because it was a directive and also because the government had assured him that he would be protected from financial losses and liabilities.

 

“I do remember wondering how Tajuddin would be able to buy the airline and when I asked Tun Daim, he explained that Tajuddin’s telecommunications company Celcom (Malaysia) Berhad was doing well,” Dr Mahathir wrote.

 

 

 

 

[KK Lee 5]

It will be a surprise if he is convicted.

 

Guess those at MH who exposed and reported him to police are left high and dry.

 

[Radzi 2]

http://www.themalaysianinsider.com/sideviews/article/why-let-tajuddin-go-scot-free-the-malaysian-insider/

 

AUG 11 — Why?

 

Why let Tan Sri Tajuddin Ramli get off the hook by ordering all government-linked companies, including Malaysia Airlines and the national debt restructuring company Danaharta, to cease all civil suits against the one-time corporate high-flyer?

 

That’s a question that Putrajaya has to answer.

 

After all, Danaharta has a judgment against the one-time telecommunications, tourism and transport czar and as at December 31, 2005, the amount outstanding was RM589.14 million.

 

On May 11, 2006, which also happened to be the original Umno’s 60th year, Danaharta and the subsidiaries commenced action to recover the money from the man trusted by Umno to helm Malaysia’s flag carrier.

 

So why this volte-face in Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz’s letter to the GLCs and Danaharta that the Finance Ministry will settle all outstanding civil suits against Tajuddin, a poster boy of Tun Dr Mahathir Mohamad’s plan to groom Bumiputera entrepreneurs.

 

“This is to inform you that the government of Malaysia and the Finance Ministry have agreed to settle all civil claims against Tan Sri Dato Tajuddin Ramli and others to be withdrawn immediately in view of the fact that the government and the Finance Ministry have agreed that the said cases will be settled out of court.

 

“For your information the government has given me the mandate to act for the government in this matter,” Nazri said in the letter sighted by The Malaysian Insider.

 

To add the incredulous nature of this flip-flop, Nazri’s letter also directs the lawyers acting for the GLCs and Danaharta to hand over their cases to the firm of Hasfarizam Wan and Aisha Mubarak, a known Umno lawyer.

 

Why an Umno lawyer? Is there any more blatant show of the nexus between business and politics in Malaysia?

 

Doesn’t it raise further suspicions about how this country is managed?

 

MAS was a profitable company when it was flogged off to Tajuddin in 1994 but by the time he left at the end of 2001, the state airline was in debt for RM9.5 billion. It has never recovered since then, despite going through an asset-stripping exercise and two business turnaround plans.

 

Just this week, the men who engineered MAS’s wide asset unbundling (WAU) in 2002 had to finally resort to getting the men behind Asia’s largest budget carrier AirAsia to help steer the loss-making state airline back to profitability.

 

But those who presided over MAS’s decline from one of Asia’s best airlines to an also-ran are not brought to account for their deeds. Fact is, MAS has lodged a police report against Tajuddin. Is that report now considered false?

 

For those outside the corridors of power in Putrajaya, there must be a need for accountability. If the likes of Tajuddin can go scot-free, then the politicians who absolved him will have to be accountable. Perhaps, in the next general election.

[flee 5]

Tajuddin settlement proof political patronage alive and well, says Pakatan

 

KUALA LUMPUR, Aug 11 —Pakatan Rakyat (PR) has flayed Putrajaya’s decision to drop all claims against Tan Sri Tajuddin Ramli, calling it proof that Barisan Nasional (BN) is resorting to political patronage to fund its war chest ahead of the next general election.

Opposition lawmakers said the out-of-court settlement was a “scratch-your-back, you-scratch-mine” deal that would allow the former chairman of Malaysia Airlines (MAS) to further reduce an initial RM1.8 billion owed to state-owned debt restructuring firm Danaharta.

 

“Now instead of the already discounted RM942 million owed to taxpayers, Tajuddin can save even more in exchange for up to hundreds of millions deposited in Umno’s war chest,” said PKR strategy chief Rafizi Ramli.

 

He told The Malaysian Insider that “Danaharta’s case is watertight so I cannot think of a good reason for the government to settle except to say, you scratch my back, I scratch yours.”

 

As at December 31, 2005, the amount outstanding was RM589.14 million and on May 11, 2006, Danaharta and the subsidiaries commenced action to recover the money.

 

DAP publicity chief Tony Pua also said that “this shows that political patronage is alive and well in the country.”

 

“This sounds the death knell of Datuk Seri Najib Razak’s New Economic Model and Economic Transformation Programme when the prime minister can allow cronies to get away at the expense of public interest,” the Petaling Jaya Utara MP said.

 

He added that as 37 other parties were told to drop suits against Tajuddin, a poster boy of the Mahathir-era policy to raise Malay corporate captains on government largesse, total funds including interest lost to the public could be in the tens of billions.

The Malaysian Insider reported today that Putrajaya has directed all government-linked companies, including MAS and Danaharta, to cease all civil suits against Tajuddin.

 

Documents obtained showed that the Finance Ministry has agreed to settle all outstanding civil suits against the protege of Tun Daim Zainuddin. Tajuddin’s failure to keep MAS in the black led to the wide asset unbundling exercise (WAU) and two business transformation programmes (BTP) in the past decade but the flag carrier remains a loss-making concern.

 

The Najib administration’s move to settle all outstanding claims against Tajuddin appears to be an attempt to wipe the slate clean in a financial saga that goes back decades to the height of Dr Mahathir’s administration.

 

Tajuddin had then been a high flyer in the 1990s along with individuals such as Tan Sri Halim Saad but the 1997 Asian financial crisis saw most of them crashing to the ground.

 

Although PM Najib is expected to call a general election within the year, it has been reported that BN is short of funds to fight polls nationally, after committing its machinery to retain its two-thirds majority in the April 16 Sarawak state election.

 

The ruling coalition was said to have spent over RM500 million in the closer-than-expected race after party intelligence said that victory was only assured in 25 of the 71 state seats.

 

Source: http://www.themalaysianinsider.com/malaysia/article/tajuddin-settlement-proof-political-patronage-alive-and-well-says-pakatan/

[KK Lee 5]

Nazri: I didn't instruct the GLCs, I only advised them

 

Minister in the Prime Minister's Department Nazri Abdul Aziz has admitted that he sent letter to government-linked companies (GLCs) on Aug 8 over the settlement with former Malaysia Airlines chairperson Tajudin Ramli, but denied instructing them to drop their suits against the tycoon.

 

Nazri said the move was in his capacity as de facto law minister, and came on the heels of moves by Tajudin (left) over the past several months to come to a settlement with the government over the companies' suit against him.

 

It was therefore not compulsory for the companies to settle their suit, but it was conveyed to them that it was advisable given the possible scenarios the new situation had presented, said Nazri.

 

The alternative was for the GLCs to further slog it out with Tajudin without a guarantee as to when it would be resolved.

 

“Tajudin had been in contact with us for the past six months proposing for a settlement.

 

"I wrote to the GLCs after gaining approval from the Second Finance Minister Ahmad Husni Hanadzlah, and as a law minister to the effect, as this case has been going on for so long - six years," Nazri told Malaysiakini when contacted.

 

He stressed further that it was "not necessary" for the GLCs to follow his advice as it was up to them to decide based on what they deemed was in their best interests.

 

"If they feel they can win they can continue on with fighting the suit. As a legal entity, they have the right to make their own decision.

 

“I only wrote to them to remind them Tajudin had approached (the government) with a view to settle, and I merely asked them to look into it,” he said.

 

The minister said further that the court cases could drag on without an assurance of victory.

 

“Let's say this case goes for a trial, it will take another five to six years and on appeal. It may (even) take another 10 years. We do not know whether the suit will go our way or in favour of Tajudin. Hence, that is why the out-of-court settlement was proposed.

 

“However, if we settle, it must not be at an additional cost to the government,” he assured.

 

Earlier today, former deputy prime minister-turned opposition leader Anwar Ibrahim questioned Nazri's actions in writing to the GLCs.

 

Instructions to GLCs to drop their legal suits should come from the finance ministry, not Nazri, said Anwar.

 

http://www.malaysiakini.com/news/172695

 

 

Which GLC need to hear or see instruction or policy to drop legal action and not to sue TR?

[Raymund Yeoh 1]

Nazri: I didn't instruct the GLCs, I only advised them

 

Minister in the Prime Minister's Department Nazri Abdul Aziz has admitted that he sent letter to government-linked companies (GLCs) on Aug 8 over the settlement with former Malaysia Airlines chairperson Tajudin Ramli, but denied instructing them to drop their suits against the tycoon.

 

Nazri said the move was in his capacity as de facto law minister, and came on the heels of moves by Tajudin (left) over the past several months to come to a settlement with the government over the companies' suit against him.

 

It was therefore not compulsory for the companies to settle their suit, but it was conveyed to them that it was advisable given the possible scenarios the new situation had presented, said Nazri.

 

The alternative was for the GLCs to further slog it out with Tajudin without a guarantee as to when it would be resolved.

 

"Tajudin had been in contact with us for the past six months proposing for a settlement.

 

"I wrote to the GLCs after gaining approval from the Second Finance Minister Ahmad Husni Hanadzlah, and as a law minister to the effect, as this case has been going on for so long - six years," Nazri told Malaysiakini when contacted.

 

He stressed further that it was "not necessary" for the GLCs to follow his advice as it was up to them to decide based on what they deemed was in their best interests.

 

"If they feel they can win they can continue on with fighting the suit. As a legal entity, they have the right to make their own decision.

 

"I only wrote to them to remind them Tajudin had approached (the government) with a view to settle, and I merely asked them to look into it," he said.

 

The minister said further that the court cases could drag on without an assurance of victory.

 

"Let's say this case goes for a trial, it will take another five to six years and on appeal. It may (even) take another 10 years. We do not know whether the suit will go our way or in favour of Tajudin. Hence, that is why the out-of-court settlement was proposed.

 

"However, if we settle, it must not be at an additional cost to the government," he assured.

 

Earlier today, former deputy prime minister-turned opposition leader Anwar Ibrahim questioned Nazri's actions in writing to the GLCs.

 

Instructions to GLCs to drop their legal suits should come from the finance ministry, not Nazri, said Anwar.

 

http://www.malaysiak...com/news/172695

 

 

Which GLC need to hear or see instruction or policy to drop legal action and not to sue TR?

 

what a load of crap this botak is spewing.......

[Lock SH 0]

Satu lagi projek oleh Kerajaan Barisan Nasional ......... harta RAKYAT DIDAHULUKAN .........

 

 

[BC Tam 2]

Housekeeping !

[alberttky 0]

KUALA LUMPUR: Former executive chairman of Malaysia Airlines (MAS) Tan Sri Tajudin Ramli has filed a RM200mil suit against a news portal over the publication of a article on the airline suffering losses of RM8bil.

 

He named The Malaysian Insider Sdn Bhd, its chief executive officer Jahabar Sadiq and journalist Shazwan Mustafa Kamal as defendants.

 

Tajudin, who was the MAS executive chairman between 1994 and 2001, filed the suit last Aug 18 at the Civil High Court registry here through the legal firm of Lim Kian Leong & Co.

 

The case has been set for case management before judge Harmindar Singh Dhaliwal on Sept 19.

 

In the statement of claims, Tajudin stated that the portal had published defamatory words in an article, with the title "MACC clear A-G of graft allegations", on May 31, 2011.

 

He claimed that the article was published after the Malaysian Anti-Corruption Commission (MACC) revealed the outcome of its graft probe against Attorney-General Tan Sri Abdul Gani Patail.

 

Tajudin claimed that the article was published with the intention of reflecting that he was implicated in the investigation against the Attorney-General.

 

Tajudin claimed that the portal also repeated the defamatory words in other articles, despite a letter sent to it to not do so.

 

He said The Malaysian Insider, when responding to his letter, stated that the words in the article were not defamatory and that they had obtained the information from multiple sources.

 

Besides general damages of RM200mil, Tajudin is also seeking aggravated damages and interests. - Bernama

 

http://www.thestar.com.my/news/story.asp?file=/2011/8/26/nation/20110826132523&sec=nation

[Raymund Yeoh 1]

TR can go screw himself....no one will support him

[flee 5]

Yes, TR crippled MH to such an extent that it never recovered from its wounds. Until today, MH is still in need or resuscitation!

[Mike P 0]

Yes, TR crippled MH to such an extent that it never recovered from its wounds. Until today, MH is still in need or resuscitation!

 

What about a thorough investigation on him and if found convicted on the corruption, get him jailed!

[Waiping 12]

What about a thorough investigation on him and if found convicted on the corruption, get him jailed!

 

I think the "advice" means more like "we are behind him".

[Mike P 0]

Ex-MAS chairman in out-of-court settlement with Malaysian Insider

 

 

 

KUALA LUMPUR: Former Malaysia Airlines executive chairman Tan Sri Tajudin Ramli confirmed on Wednesday to record settlement with The Malaysian Insider in his defamation suit against the online news portal.

 

The terms of settlement will be recorded on Friday before the High Court judge Justice Harmindar Singh Dhaliwal.

 

Tajudin had named the proprietor of The Malaysian Insider Sdn Bhd, The Malaysian Insider chief executive officer/editor Jahabar Sadiq and its reporter Shazwan Mustafa Kamal as defendants in the suit filed on Aug 18.

 

In his lawsuit, Tajudin claimed the defendants had published defamatory words about him on their website in an article titled “MACC clears A-G of graft allegations” on May 31.

 

The words in the article meant that MAS lost RM8bil during his tenure as its executive chairman between 1994 and 2001, he said.

 

In his statement of claim, Tajudin contended that the words also implied that complaints had been lodged against him for the loss and that he was dishonest in his dealings with MAS, saying the words suggested he had abused his position for his own pecuniary advantage and acted unprofessionally.

 

Alternatively, he said, the words also meant that he had perpetrated a fraud on MAS by making secret profits in transactions involving MAS and was guilty of improper conduct and should be subjected to investigation by the Malaysian Anti-Corruption Commission (MACC).

 

The defendants, he claimed, had replied in a letter dated June 20 that the words were not defamatory and that they had multiple sources to the words, of which some were in public domain.

 

He had earlier sought general damages of at least RM200mil and other relief deemed fit by the court.

 

http://www.thestar.com.my/news/story.asp?file=/2011/9/28/nation/20110928101836&sec=nation

 

Wow, he still could make money by seeking 200 mil from MAS after resignation for so long? Total ridiculous!

[Cheng Long 0]

Mind you.. If you are connected with those walking in the corridors of power, you can be a bastard and invincible..

[Mike P 0]

 

Wow, he still could make money by seeking 200 mil from MAS after resignation for so long? Total ridiculous!

 

Wow, he still could make money by seeking 200 mil thru MAS after resignation for so long? Total ridiculous!

[alberttky 0]

Wow, he still could make money by seeking 200 mil thru MAS after resignation for so long? Total ridiculous!

 

Malaysia boleh.

[Cire 0]

TR fella is a pawn in the big boys' game, which would explain why the suits have been dropped against him. Nazri's scripted nonsense is just to cut off the tail-ends to the whole circus play.

SOP - standard operating procedure.

He or rather the government does care whether its a ridiculous joke or a non-sensible solution. All they know is, the issue is settled, and the government have said the reasons for it, the end.

 

With all the print medias and communication behind the ruling government, what or who is there to challenge this? A puppy from PKR? Cannot go far lah fren, in this land that is infamous for its Malaysia Bolih slogan..

[BC Tam 2]

The time when the voting public does its duty again is fast drawing near

There was a stark reminder few years back of latent possibilities

Hence, a bit of housekeeping and tying up of loose ends is but only expected, no ?

[flee 5]

I think that it would do a lot of good if BN spent a term or two in Opposition.

 

They are far too arrogant and complacent - even the 2008 election losses did not seem to moderate them one bit.

[BC Tam 2]

I think that it would do a lot of good if BN spent a term or two in Opposition.

I reckon if BN (as we know it) ever goes into opposition, it will disintegrate into the individual components rather than remain the sum total of today

Sorry, OT

Edited September 28, 2011 by BC Tam

[Mohd Azizul Ramli 2]

Hutang RM589 juta Tajudin dilupuskan

http://www.malaysiakini.com/news/192930

Tan Sri Tajudin Ramli tidak perlu membayar RM589 juta wang yang dihutangnya daripada Pengurusuan Danaharta Nasional Bhd kerana ia sebahagian daripada penyelesaian luar mahkamah yang dicapai dengan beberapa syarikat-syarikat berkaitan kerajaan (GLC) bulan lalu.

 

Ini disahkan kepada Malaysiakini oleh sumber dalaman selepas ahli parlimen Petaling Jaya Utara Tony Pua pada 15 Februari lalu mendakwa terdapat penyelesaian rahsia yang dicatatkan oleh Mahkamah Rayuan di antara bekas pengerusi Malaysia Airlines (MAS) dan beberapa GLC.

 

"Daripada sumber saya, saya boleh sahkan bahawa hutang itu telah dlupuskan sepenuhnya sebagai sebahagian daripada penyelesaian itu. Saya tahu tentang ini daripada sumber dalaman. Penyelesaian ini menyebabkan negara serta merta kerugian RM589 juta," kata Pua kepada Malaysiakini bulan lalu.

 

Penyelesaian itu berikutan persetujuan Tajudin untuk menarik balik rayuannya pada 7 Disember, 2009 di Mahkamah Tinggi Kuala Lumpur terhadap beberapa litigan dan GLC termasuk Telekom Malaysia Bhd, Naluri Corporation, Celcom (M) Bhd, Atlan Holding Bhd dan Kumpulan CIMB Group.

 

Tiga tahun lalu, Mahkamah Tinggi mengarahkan Tajudin membayar jumlah berkenaan kepada Danaharta, jumlah wang yang beliau berhutang ketika pembelian kontroversi saham MAS pada tahun 1994, yang membuka jalan bagi hartawan untuk memiliki syarikat penerbangan nasional itu.

 

Pada masa yang sama, mahkamah juga membatalkan tuntutan balas RM13 bilion yang difailkan oleh Tajudin terhadap GLC berkenaan.

[Mushrif A 3]

Probably going to court will open a super giant mega-huge can of worms....& fodder for the opposition, so close to the elections.

[Mohd Azizul Ramli 2]

 

Tajudin, MAS withdraw interlocutory appeals, to move on with trial

 

 

 

 

 

 

UPDATED @ 03:48:28 PM 10-05-2012

By Shazwan Mustafa Kamal

May 10, 2012

http://www.themalaysianinsider.com/malaysia/article/tajudin-mas-withdraw-interlocutory-appeals-to-move-on-with-trial/

PUTRAJAYA, May 10 — The Court of Appeal has struck out six interlocutory appeals involving three cases relating to claims and counter-claims between Malaysia Airlines (MAS) and Tan Sri Tajudin Ramli.

Tajudin has been entangled in a complicated series of expensive suits.

The decision was made today after both parties told the court here that they had agreed to withdraw the appeals, and to focus on the MAS-Tajudin trial which is expected to begin some time in July.

Court of Appeal judges Datuk Seri Abu Samah Nordin, Datuk Syed Ahmad Helmy Syed Ahmad and Datuk Alizatul Khair Osman Khairuddin ruled that “they (the six interlocutory appeals) all be withdrawn with no order to costs... all struck off with no order to costs.”

“Basically, these are six interlocutory appeals concerning three cases with MAS, claims and counter-claims.

“Forget about interlocutory, back to trial,” Rosli Dahlan, one of the lawyers representing MAS, told reporters outside court.

MAS has said it was forced to enter into a disadvantageous aircraft lease contract with a company, which was later linked to Tajudin’s family, causing it to lose RM10 million to RM16 million a month before the project was terminated when Tajudin left the company.

The termination resulted in a RM300 million arbitration claim against MAS by the company.

Tajudin has in turn claimed that a separate suit, by MAS and its two subsidiaries, MAS Golden Holidays Sdn Bhd dan MAS Hotels & Boutiques Sdn Bhd, contained bare allegations with no basis and was an abuse of the court system.

MAS and its subsidiaries charged that Tajudin and his four companies — Naluri Corporation Bhd, Promet (Langkawi) Resorts Sdn Bhd, Kauthar Venture Capital Sdn Bhd and Pakatan Permai Sdn Bhd — had intentionally breached his obligations and trust to win certain contracts that benefited him, using MAS.

The Kedah-born businessman claimed that MAS had acted with malice and in bad faith in taking legal action against him to embarrass and tarnish his reputation.

Tajudin was the executive chairman of the airline from 1994 to 2001.

Tajudin has been entangled in a complicated series of expensive suits, countersuits and appeals with various parties arising from his failure to service a billion ringgit loan he took to purchase a major stake in MAS in 1994.

He has claimed that his purchase was a forced “national service”, disguised as an arm’s length commercial deal, because the government wanted to appease the investment community and the public.