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Wednesday, 5 March 2014

PAC: No reason for MAS to incur RM1.2bil in losses

KUALA LUMPUR: The Public Accounts Committee (PAC) sees no reason for Malaysia Airlines to have incurred losses amounting to RM1.2bil last year.

Its chairman Datuk Nur Jazlan Mohamed said: “MAS is supported by Khazanah Holdings as well as Malaysia Airport Holdings Berhad and there is no reason for them to have incurred the losses.”

Nur Jazlan noted that MAS was managed by a group of highly paid professionals, who were tasked with the board of directors to turn around the national carrier.

“I don’t understand why it is so difficult to turn MAS 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 that with professionals handling MAS, they are performing badly? This is for Khazanah and the MAS board of directors to answer,” he said at Parliament yesterday

He added that MAS had “almost a monopoly” of the airline industry with AirAsia as a “good competitor”.

In late February, MAS unveiled its fourth quarter financial report, which showed losses of RM343mil, putting the airline RM1.17bil in the red in 2013.

Under a turnaround plan that CEO Datuk Seri Idris Jala — now Minister in the Prime Minister’s Department — announced in 2006, the airline made a profit of RM851mil in 2007.

The performance of MAS fluctuated in subsequent years. In 2011, it registered record losses of RM2.5bil.

Nur Jazlan said the PAC would not investigate the losses in MAS as the airline “has more resources than us to do this”.

“MAS has its own board (of directors), the Securities Commission, the Bursa Saham, which regulates its conduct as a listed company, and Khazanah behind them,” he said.

Earlier, Nur Jazlan said that the Government had decided to change from cash to accrual accounting effective Jan 1, 2015.

Under the present system, liabilities are only accounted for when payment is made, unlike the new system where they are immediately taken into account.

Tags / Keywords: Transport Safety , PAC , nur jazlan and MAS


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