No Malaysian will believe Najib when he described the RM6 Billion injected to MAS as an investment rather than a bailout. Why would any sane investors want to “invest” in a company that has lost a total RM4.3 Billion for the past 3 years?
It is crystal clear that the RM6 billion injected to MAS is a bailout as it is use to save the airline from bankruptcy. Najib is deluded when he said the RM6 billion injected to MAS as an investment rather than a bailout.
The proposed MAS Act to facilitate staff transfer and to terminate or review contracts which are unfair to the airline is also controversial. The proposed MAS Act if come into effect will retroactively changes the legal status of the employment contacts of MAS staffs. The MAS Act is against natural right and unjust as it could nullify all current employment contracts with MAS.
If MAS wants to come under legislative protection, it should go through the bankruptcy process, not by passing the proposed MAS Act. Filing for bankruptcy under Section 176 of the Companies Act 1965 will allow MAS come under creditors protection and review all its current contracts.
After filing for bankruptcy, MAS can still operate under a new company with the same name, if the registrar of companies approved. This would be an easier and less controversial option compare to passing the MAS Act in parliament.
Najib must explain the reasons of proposing the MAS Act instead of letting MAS file for bankruptcy. Is there a hidden agenda not to allow MAS file for bankruptcy?
Najib must also ensure the proposed aviation commission that will act as an economic regulator for the aviation industry must not hinder free-market competition and provide MAS an unfair advantage.
Media Statement by Chong Zhemin, DAP Perak Economic Development Bureau Chief and Political Secretary to the Taiping MP on 30 Aug 2014