MAS’ out-of-court settlement with Tajudin Ramli (updated)

Malaysia Airlines System Bhd’s announcements of its out-of-court settlement with former MAS chairman on all the outstanding lawsuits are sketchy.

A GLC, Prokas Bhd, had earlier reportedly won a RM589m suit against Tajudin and the case was supposed to be heard in the Court of Appeal. Prokas is a private limited company owned by the Finance Ministry. It was set up to manage the residual assets of the Danaharta group of companies.

But then an out-of-court settlement was reached. And it then transpired that all others GLC suits involving Tajudin would be similarly settled.

Not much background information provided in the MAS announcements to Bursa about the settlement. For instance, why is MAS buying large tracts of land in Langkawi?

MAS may not have lost, but we are none the wiser about the claims and counter-claims and how they arose in the first place – e.g. what this whole business of ‘national service’ was all about, the political-business context and the key figures involved. If the cases had been heard in court, the claims could have been tested and much could have been revealed.

The public has a right to know how MAS was managed as the firm is owned by the Finance Ministry (on behalf of the public). But now a veil has been drawn and we will never know what really transpired.

MATERIAL LITIGATION Malaysian Airline System Berhad & its subsidiaries (“MAS”) refers to the appeals arising from legal suits involving MAS and Tan Sri Dato’ Tajudin Ramli (“TSDTR”)
MALAYSIAN AIRLINE SYSTEM BERHAD
25/06/2012 05:43:24 PM

Type Announcement
Subject MATERIAL LITIGATION
Description Malaysian Airline System Berhad & its subsidiaries (“MAS”) refers to the appeals arising from legal suits involving MAS and Tan Sri Dato’ Tajudin Ramli (“TSDTR”)

Further to our announcement made on 22 June 2012, we append hereunder the salient terms of the settlement:-

a) the parties in KLHC Suit No: S3-22-634-2006 will complete the Sale and Purchase Agreement dated 16 June 1997 (“SPA”) in which MAS purchased certain lands in Langkawi. MAS had sought to enforce the SPA by way of specific performance. This will result in the remaining land purchased (a 21 acre portion of the land held under HS(D) 623, Mukim Ayer Hangat, Daerah Langkawi) to be effectively transferred to MAS upon payment of the agreed balance purchase price of RM4,001,622.50 that is still outstanding under the SPA;

b) all Counter-claims in KLHC Suit No: S3-22-634-2006, KLHC Civil Suit No: S7-22-487-2006 and SAHC Civil Suit No: MT3-22-365-2006 are to be withdrawn against MAS and parties related; and

c) MAS and parties related will withdraw its claims in the above legal suits.

There is no adverse financial or operational impact on MAS arising from the settlement. MAS will not be incurring any financial or operational loss.

This announcement is dated 25 June 2012

The earlier announcement:

MATERIAL LITIGATION Malaysian Airline System Berhad & its subsidiaries (“MAS”) refers to the appeals arising from legal suits involving MAS and Tan Sri Dato’ Tajudin Ramli (“TSDTR”)
MALAYSIAN AIRLINE SYSTEM BERHAD
22/06/2012 05:16:55 PM

Type Announcement
Subject MATERIAL LITIGATION
Description Malaysian Airline System Berhad & its subsidiaries (“MAS”) refers to the appeals arising from legal suits involving MAS and Tan Sri Dato’ Tajudin Ramli (“TSDTR”)

We refer to our previous announcement made on 16 February 2012 in relation to the legal suits involving MAS and Tan Sri Dato’ Tajudin Ramli (TSDTR).

We wish to announce that MAS and TSDTR have reached an agreement to settle the legal suits concerned on terms. As a result, the legal suits and all counter-claims in the legal suits against MAS will be withdrawn.

This announcement is dated 22 June 2012.