Khazanah must explain losses at Malaysia Airlines, says parliamentary committee head

KUALA LUMPUR, March 4 — Khazanah Nasional Bhd’s highly paid executives may owe the public an explanation why losses at national carrier Malaysia Airlines ballooned to RM1.2 billion last year, the head of an influential parliamentary committee said today.

“They still can’t solve the problem of MAS. We can call them but they are more qualified than us. They are highly qualified people who are paid world standard salaries, so they should do more,” Public Accounts Committee (PAC) chief Datuk Nur Jazlan Mohamed (picture) said of government investment arm Khazanah.

“Maybe they should explain to the people,” he added.

Khazanah holds nearly 70 per cent of the airline.

Nur Jazlan said MAS has been under restructuring plans for over a decade with full government support with little to show by way of results.

He blamed executives at Khazanah and MAS executives for failing to turnaround the airline.

“If they want world standard compensation, world standard pay but then they can’t solve the problem, then they should own up and say they failed.

People expect more from them because they are being well-compensated,” he said.

The PAC chief claimed Khazanah and MAS executives were paid much less ten years ago when the airline was doing much better.

He then said PAC may consider reviewing the reward system for executives in government-linked companies in light of the mess at MAS.

Two weeks ago MAS announced a RM1.17 billion loss for 2013. In 2011, it chalked up a record loss of RM2.5 billion.

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