Malaysian Insider, 12 August 2011
KUALA LUMPUR, Aug 12 — Datuk Seri Nazri Aziz cannot dodge responsibility for the Najib administration’s directive to GLCs to drop their suits against Tan Sri Tajuddin Ramli which critics have called a bailout for the former Malaysia Airlines (MAS) chairman, according to a constitutional expert.
Abdul Aziz Bari, professor of law at the International Islamic University, told The Malaysian Insider that in a constitutional Cabinet government, the entire Cabinet is responsible for all government actions.
“Of course, the finance minister is responsible for fiscal matters. But the entire Cabinet is tied in as well. This is the meaning of collective responsibility.
“In this context, whether or not Nazri gave advice or orders is not important. As a minister, Nazri is responsible to Parliament, meaning the public, on what happens to GLCs which belong to the public,” he said.
Nazri, minister in the Prime Minister’s Department, had told The Malaysian Insider yesterday that he had written to GLCs earlier this month to withdraw their suits, worth at least RM2 billion, to buy time for all concerned parties to reach a “win-win” agreement and put an end to the prolonged financial saga involving Tajuddin.
He said the matter was referred to Second Finance Minister Datuk Seri Husni Hanadzlah who then directed him to pen the letter, taking note that Tajuddin’s case was scheduled for case management in court yesterday.
“Since it involved the law and I am the minister in charge of law, Husni told me, why don’t you look into this. It is not a cloak-and-dagger move ... we knew this would come out somehow and there is nothing to hide. I wrote that letter using my letterhead,” said Nazri.
The Padang Rengas MP listed the three main parties involved in suits against Tajuddin — MAS, Telekom Malaysia and Prokhas Sdn Bhd — and said the government-linked entities can still choose to proceed with their suits if they felt they had a strong case against him.
Abdul Aziz Bari, professor of law at the International Islamic University, told The Malaysian Insider that in a constitutional Cabinet government, the entire Cabinet is responsible for all government actions.
Abdul Aziz said the entire Cabinet is collectively responsible. — File pic
“In this context, whether or not Nazri gave advice or orders is not important. As a minister, Nazri is responsible to Parliament, meaning the public, on what happens to GLCs which belong to the public,” he said.
Nazri, minister in the Prime Minister’s Department, had told The Malaysian Insider yesterday that he had written to GLCs earlier this month to withdraw their suits, worth at least RM2 billion, to buy time for all concerned parties to reach a “win-win” agreement and put an end to the prolonged financial saga involving Tajuddin.
He said the matter was referred to Second Finance Minister Datuk Seri Husni Hanadzlah who then directed him to pen the letter, taking note that Tajuddin’s case was scheduled for case management in court yesterday.
“Since it involved the law and I am the minister in charge of law, Husni told me, why don’t you look into this. It is not a cloak-and-dagger move ... we knew this would come out somehow and there is nothing to hide. I wrote that letter using my letterhead,” said Nazri.
The Padang Rengas MP listed the three main parties involved in suits against Tajuddin — MAS, Telekom Malaysia and Prokhas Sdn Bhd — and said the government-linked entities can still choose to proceed with their suits if they felt they had a strong case against him.
Nazri issued the directive to the GLCs earlier this month. — File pic
Prokhas is a private limited company wholly-owned by the Minister of Finance Incorporated and tasked to manage the residual assets of Pengurusan Danaharta Nasional Berhad and its group of companies.
But Abdul Aziz said, in his email yesterday, that “Nazri cannot escape with the excuse that he only advised and did not order the GLCs. That is just terminology. Whether advice or suggestion, they are all directives and if they result in losses, then the Cabinet must answer to Parliament.”
He added that in a democracy that practices accountability, this would mean a resignation.
The Malaysian Insider reported yesterday that Putrajaya, through Nazri’s letter, had directed all GLCs, including MAS and the national debt restructuring company Danaharta, to cease all civil suits against Tajuddin, the former chairman of the national carrier and protégé of Tun Daim Zainuddin.
Daim is a close friend of former Prime Minister Tun Dr Mahathir Mohamad and an ex-finance minister who was the architect of the now discredited policy of nurturing a class of Malay corporate captains on government largesse.
Individuals such as Tajuddin, Tan Sri Halim Saad and others flew high in the 1990s but their true mettle was tested during the Asian financial crisis. Nearly all of them fared poorly.
The Najib government’s move to settle all outstanding claims against Tajuddin appears to be an attempt to wipe the slate clean in a financial saga that goes back decades to the height of Dr Mahathir’s administration.
MAS had first lodged a police report against Tajuddin in 2002 for allegedly causing the flag carrier to suffer losses in excess of RM8 billion. Tajuddin was the executive chairman of the airline from 1994 to 2001.
He added that in a democracy that practices accountability, this would mean a resignation.
The Malaysian Insider reported yesterday that Putrajaya, through Nazri’s letter, had directed all GLCs, including MAS and the national debt restructuring company Danaharta, to cease all civil suits against Tajuddin, the former chairman of the national carrier and protégé of Tun Daim Zainuddin.
Daim is a close friend of former Prime Minister Tun Dr Mahathir Mohamad and an ex-finance minister who was the architect of the now discredited policy of nurturing a class of Malay corporate captains on government largesse.
Individuals such as Tajuddin, Tan Sri Halim Saad and others flew high in the 1990s but their true mettle was tested during the Asian financial crisis. Nearly all of them fared poorly.
The Najib government’s move to settle all outstanding claims against Tajuddin appears to be an attempt to wipe the slate clean in a financial saga that goes back decades to the height of Dr Mahathir’s administration.
MAS had first lodged a police report against Tajuddin in 2002 for allegedly causing the flag carrier to suffer losses in excess of RM8 billion. Tajuddin was the executive chairman of the airline from 1994 to 2001.
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