“MAS the flying buffet” email about continuing extravagance and gross waste of public funds –  to seek meeting with MAS CEO and Chairman

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Media Statement

by Lim Kit Siang  
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(Parliament,Tuesday): MAS posted a net loss of  RM280.7 million in its first quarter and RM368 million in the second quarter, bringing the total loss suffered by the national carrier to a walloping RM648 million in the first six months of its current financial year.

Revenue in the second quarter to Sept 30 grew by 10 per cent to some RM3 billion but costs expanded three times faster or by some 30 per cent.

High operating costs of RM3.4 billion has been given as the main reason for its losses.  About half of that was due to fuel costs and the rest made up of staff costs, handling and landing fees, aircraft maintenance and overhaul charges, and its prior restructuring charges.

I am very concerned about an email which I have received entitled “MAS the flying buffet” making very serious allegations of continuing extravagance and gross waste of funds in MAS, referring to issues including::

• RM841,000 renovation.
• RM1.6 million spent on acquisition of art-work post-renovation.
• RM10 million car deal for Senior MAS Executives.
• Allegations about MAS food catering contract.
• Allegations about MAS consultancy services.

If these serious  allegations are true, and no firm and effective actions are taken to eradicate extravagance and  abuses  of power in MAS, it is most unlikely that the new MAS Chief Executive Officer, Idris Jala, will be able to effect a turnaround of the national carrier from its  colossal losses to a profitable and model corporation.

Malaysians are entitled to a proper accountability from the new MAS CEO, because it is a GLC  (Government-linked Company) which means it is  funded with taxpayers’ money, and losses suffered by MAS are eventually at the taxpayers’ expense.

I will seek a meeting with the MAS CEO Idris Jala   and MAS Chairman, Datuk Mohamed Munir Majid on the serious allegations in the “MAS the flying buffet” email.

(06/12/2005)