Mahathir used Tajudin, MAS to cover up forex losses, Kit Siang knows it

 |Feb 9, 2017
Mahathir used Tajudin Ramli and MAS to cover up  forex losses.
Mahathir used Tajudin Ramli and MAS to cover up forex losses.

This was what A. Chandrakumanan, PAR Malaysia president, said on June 12, 2015:
“Mahathir casually replied that it does not make sense for him to write about the national airline’s dealings as he was never the chairman of MAS. On the surface, what Tun replied to Zaid (Ibrahim) makes sense. However, such thoughts evaporate into thin air when you actually refer to the affidavits filed in court by one Tajudin Ramli. The case eventually was settled out of court in 2011.
Before the “out-of-court” settlement for the Malaysian government to write-off Tajudin’s RM580 million judgement debt, Tajudin had claimed in affidavits in court that former premier Mahathir had made him buy MAS in 1994 to help bail out Bank Negara after the central bank suffered massive foreign exchange losses due partly to speculation in foreign exchange markets as a “national service” with an “Overriding Agreement” to indemnify him against any losses suffered.
Although this has been denied by Mahathir, an answer which is relevant and pertinent to the million dollar question as to who must bear responsibility not only for some RM10 billion MAS losses.
It has to be mentioned here that the a loss of 1.8 billion was suffered directly due to the strange and rather suspicious move from the government to buy back Tajudin’s 29.09 per cent stake in MAS at RM8 per share representing a premium of RM4.32 or 117 per cent over the market price at RM3.68 per share when the deal was signed on December 20, 2000.”

Nowadays Lim Kit Siang does not talk about Mahathir's financial scandals that wasted billions from national coffer.
Nowadays Lim Kit Siang does not talk about Mahathir’s financial scandals that wasted billions from national coffer.

Fake sale

Basically, what all these reports say is that the government suffered an estimated RM10 billion loss by ‘selling’ MAS to Tajudin Ramli and then ‘buying it back’.

The reason for this fake sale is to make a ‘paper profit’ to cover the huge RM30 billion (or US$10 billion) loss that Bank Negara suffered.

Bank Negara was technically bankrupt but the government could not reveal this.

So they did ‘creative accounting’ to show that the disaster was not as huge as what people are saying and that it was actually a ‘small paper loss’.

In short, the government robbed Peter to pay Paul, or dug a hole to cover another hole, leaving an even bigger hole behind.

The Sun Daily’s special report of July 6, 2006, Tajudin alleges secret deal with Mahathir and Daim, which Mahathir and Daim have never denied, goes on to say:
“Tan Sri Tajudin Ramli has counter-sued for RM13.46 billion and also drops the following bombshell in court documents:
* He was directed by former prime minister Mahathir Mohamad and former finance minister Tun Daim Zainuddin to buy shares in MAS to help Bank Negara recover from foreign exchange losses in 1994,
* The transaction was a national service but was disguised as an arm’s length commercial deal because the government wanted it that way,
* He was at all times only a nominee/agent of the government in MAS,
* He was assured repeatedly by Mahathir and Daim that he would not suffer any losses or be held liable for anything arising from his purchase of the MAS shares.”

Lim Kit Siang was ranting and raving for years over Mahathir's financial scandals. But now he has gone into a switch-off mode. Maybe cat got his tongue.
Lim Kit Siang was ranting and raving for years over Mahathir’s financial scandals. But now he has gone into a switch-off mode. Maybe cat got his tongue.

Kit Siang on Mahathir’s financial scandals

Even Lim Kit Siang suspects that the RM10 billion MAS disaster is to cover up much larger disasters amounting of RM100 billion in his blog posting titled “Is RM589 million out-of-court settlement of Tajudin Ramli’s debts proof Malaysians today are still paying for RM100 billion Mahathir financial scandals?”

In that posting Kit Siang said:
“Malaysians are entitled to a frank and honest answer from the Prime Minister, Datuk Seri Najib Razak, whether the RM580 million out-of-court settlement of Tajudin Ramli’s debts is proof that Malaysians today are still paying for the RM100 billion financial scandals perpetrated in the 22 years Tun Dr. Mahathir was the Prime Minister. And if so, they want to know of other such instances.
Tajudin had claimed through his affidavits that former premier Mahathir had made him buy MAS to help bail out Bank Negara after the central bank suffered massive foreign exchange losses due partly to speculation in foreign currency markets as a “national service” with an “Overriding Agreement” to indemnify him against any losses suffered.”

So there you are.

Kit Siang has spoken and Malaysians believe that Kit Siang always tells the truth and never lies.

Kit Siang said Mahathir cost the country RM100 billion and that he was still costing the country losses until today.

Kit Siang said the MAS disaster was to cover up another bigger disaster, the bankruptcy of Bank Negara.

Would Kit Siang lie? – Malaysia Today

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Raja Petra Kamarudin or RPK, cousin to the Selangor Sultan, is one of Malaysia's earliest online 'citizen journalists'. He started his website in 1995 before the internet 'explosion' triggered by the Reformasi movement in September 1998. Malaysia Today was launched as a blog in August 2004 and is one of the few pioneer blogs still active and posting articles on a daily basis 24-7. RPK, 66 years old, has been writing since 1990.