Cabinet meeting tomorrow should decide on a mechanism like a national referendum for Malaysians to express their support or opposition to the government’s RM1.792 billion buy-back of Tajudin’s MAS shares at RM8 a share

Media Conference Statement
by Lim Kit Siang 

(Sibu, Tuesday): The Cabinet meeting tomorrow should decide on a mechanism like a national referendum for Malaysians to express their support or opposition to the government’s RM1.792 billion buy-back of Tajudin’s MAS  shares at RM8 a share.

In his long reply in Parliament last Wednesday  on the government’s  buy-back of Tan Sri Tajudin Ramli's 29.09 per cent stake in MAS at RM8 a share when the market price was only RM3.68, the Finance  Minister, Tun Daim Zainuddin said that “If the people and MPs are not happy with this purchase decision, the Government can sell the shares back to Naluri.”

No Minister should ever make any frivolous  or theatrical statement in Parliament on serious issues of state if there is no intention to honour it, and in view of the statement by Daim and the widespread public opposition to the government’s bail-out of Tajudin Ramli in buying his MAS stake at the exorbitant price of RM8 per share, the Cabinet tomorrow should decide on the mechanism whereby the people could be given the  opportunity to express their support or opposition to the  government’s buyback of the MAS stake from Tajudin.

This mechanism can be by way of a national referendum or any other means of seeking  majority public opinion on this issue.

The DAP’s position is that the government should  sell back the 29.09 per cent stake in MAS to Tajudin Ramli at RM8 per share and get Tajudin to repay the government the  RM1.792 billion for his MAS stake.

DAP agrees with the government bailing out MAS as it is a national carrier but we cannot agree with the bailing out of Tajudin.

The government’s payment of a premium of RM4.32 or 117 per cent over the market price of MAS to Tajudin is unjustifiable for two reasons:
 

  1. No independent professional valuation was ever done before the buy-back deal.
  2. Violation of rules on the bail-out of companies established by the National Economic Action Council in the “National Economic Recovery Plan” as   Tajudin was not equired to “take his appropriate hair-cuts” for the bailout  but was  instead  given a bonanza at taxpayers’ expense to reward for his mismanagement of MAS by  being given  117% premium for the  MAS shares over the  market price, transforming it into a personal rescue for Tajudin instead of a public rescue for MAS.

(27/3/2001)

*Lim Kit Siang - DAP National Chairman