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Wednesday, July 10, 2013

‘Malindo Airways licence given in haste’

Najib Tun Razak launched the low-cost airline before it underwent inspection and was issued its aviation license, says DAP’s Tony Pua.
KUALA LUMPUR: Prime Minister Najib Tun Razak’s eagerness to launch low-cost airline Malindo Airways months before its aviation license was approved has raised a DAP lawmaker’s suspicions that cronyism was involved in the deal.
According to a written parliamentary reply to DAP National Publicity Secretary Tony Pua, the Department of Civil Aviation Malaysia (DCA) had issued Malindo Airways its aviation license on February 28, after concluding the firm was in a “stable financial position”.
But Najib had launched the company – a joint venture between National Aerospace and Defence Industries Sdn Bhd (Nadi) and PT Lion Group – on September 12, 2012.
“This means that Najib had launched and announced the date of operations before the DCA could examine whether the company deserved to receive the license,” Pua said during a press conference at the parliament lobby here today.
“This has given us even more concrete evidence that Malindo Airways was given extraordinary support from the Prime Minister himself, to the point that its other flaws were overlooked.”
He noted that DZJJ Sdn Bhd, a firm owned by former Cabinet Minister Jamaluddin Jarjis’s two children – Nur Anis Jamaluddin, 27, and Ikhwan Hafiz Jamaluddin, 25 – owned 10.5% of Nadi’s shares.
The Finance Ministry also owns a 5.7% share in Nadi.
Pua asked whether these were the reasons the DCA had approved Mandilo Airways’s license in the first place, given what he said was the firm’s sketchy background.
“According to the latest report by Company Commissions Malaysia (CCM), Malindo Airways has a paid-up capital of only RM1 million.
“Nadi, which is Malindo Airways’s main shareholder, violated the  Companies Act 1965 last year for not filing their financial statements since 2007, or for six years in a row,” said the Petaling Jaya Utara MP.
He also said that a subsidiary  of PT Lion Group, Lion Mentari Air, had been banned in the European Union for “safety concerns due to alleged poor maintenance and regulatory oversight standards on the part of the EU.”
“In April, a Lion Air airplane crashed in Bali. Last year, many Lion Air pilots were arrested for drug use…and on July 2011, Lion Air’s services were suspended for several months due to terrible on-time performance,” said Pua.
He urged Najib to explain whether cronyism was involved in approving Malindo Airways’s aviation license.
“This question is important because it shows that Malaysia, even after Najib’s ‘transformation’ is still influenced by Barisan Nasional’s problem of cronyism,” said Pua.

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