KUALA LUMPUR: The Public Accounts Committee (PAC) will not be investigating national airline Malaysia Airline System (MAS) over its billions in losses.
PAC chairman Nur Jazlan Mohamed said the flag carrier has its own regulatory body which was far more resourceful than the PAC.
“MAS has its own board, the Securities Commission, the Bursa Saham (stock exchange) which regulates its conduct as a listed company and Khazanah (Nasional Berhad) behind them.
“As such, they have more resources than us to investigate the losses in MAS,” he told reporters after a press conference today.
MAS which is mostly held by the government’s investment holding arm Khazanah Nasional, accumulated a loss of RM1.17 billion last year.
Nur Jazlan was of the view that the losses in MAS were not due to leakages, rather, due to management.
He said MAS was managed by a group of highly regarded professionals, the board of directors should therefore formulate a strategy to turn around MAS.
“I don’t understand why MAS has a difficulty to be turned around. With the full support of the government and after more than 15 years of restructuring, why can’t they find long term solutions?
“And why is it, with professionals handling it, they are performing badly? As such, it is up to Khazanah and MAS’ board of directors to answer,” he said.
Govt must review MAS’ role
He added that MAS has an ‘almost’ monopoly of the airline industry with the exception of Air Asia which he claimed was a ‘good competitor’.
Nur Jazlan said the government should take a re-look at MAS’ role (in the airline industry) if it continues with losses.
Last Tuesday, MAS announced its fourth quarter result that saw it suffer another RM343 million in losses, putting the airline RM1.17 billion in the red for 2013.
In 2005, it underwent a turnaround plan under Idris Jala, now minister in the PM’s department, which reversed the losses that traced back to the 1997 Asian Financial Crisis.
But despite the publicised turnaround, the airline soon fell back into the red and registered its worst loss in 2011. It chalked up a record loss of RM2.5 billion.
In the same year, it carried out a controversial share-swap with rival AirAsia, brokered by Khazanah. It was later unravelled following vociferous complaints from lawmakers, airline employees and consumers.
The deal was also ruled to be unlawful by the Malaysia Competition Commission last September, when it fined both airlines RM10 million each under the Competition Act 2010.
MAS is also facing a protracted battle with new employees union, Nufam, which has threatened to picket the airline over alleged union-busting tactics.
