Pua: Why the special treatment for Malindo Air?

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KUALA LUMPUR (July 10): Petaling Jaya Utara MP Tony Pua today questioned Transport Ministry's justification to give airline Malindo Air its air service licence when the company was not as financially sound.

"According to the (written parliamentary) answer given to me by the ministry, the air service licence was given based on their 'sound financial standing' and 'passing the technical audit'.

"But according to the Companies Commission of Malaysia's (SSM) latest report, Malindo Air only has a paid-up capital of RM1 million," he told reporters in a press conference in Parliament today.

He repeated that the main shareholder of Malindo Air, National Aerospace and Defence Industries Sdn Bhd (NADI) had violated the Companies Act 1965 as they had not filed their financial statements for six consecutive years since 2007.

"I would like to ask the Transport Ministry, is a company which only has a RM5 million capital and owned by a company which has violated laws and has no recent financial statement qualified as a company which has a 'sound financial standing'?" he said.

Pua also slammed Prime Minister Datuk Seri Najib Razak for giving Malindo Air special treatment.

He pointed out that Najib announced in September last  that the airline will be in operation May 2014.

However, the Transport Minister had revealed in reply to Pua's query that the budget airline was only given its Air Service Licence by Department of Civil Aviation (DCA) on Feb 28 this year.

"That means Najib had launched and announced the operation date even before the DCA completed an audit on whether the company was worthy of the licence," he said.

"This is proof to show that Malindo Air is given extraordinary support by the PM himself that the flaws of the company are ignored".

According to Pua, Malindo's operations were dubious and highlighted its other shareholder, PT Lion Group, which has been banned by the European Union (EU) for "safety concerns due to alleged poor maintenance and regulatory oversight standards on the part of EU, preventing them from entering the airspace of any number (of) state".

The DAP MP also asked if the special treatment was due to Datuk Seri Jamaluddin Jarjis's connection with Malindo

Pua had, in October last year, revealed the link between Jamaluddin and Malindon through a search with SSM which showed that one of NADI is part-owned by DZJJ Sdn Bhd, where two of Jamaluddin's children were listed as directors.

"The question Najib has to answer is this, was the Air Service Licence approved because 10.5% of NADI is owned by DZJJ Sdn Bhd which is owned by Jamaluddin's children – Nur Anis Jamaluddin (27) and Ikhwan Hafiz Jamaluddin (25). 5.7% of NADI is also owned by the Finance Ministry," he said.

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