Previous Khazanah team must take responsibility
FocusM | 08 Mar 2019 00:30
They say, to make an omelette, one will have to crack the eggshell first. This seems to be what is happening at sovereign wealth fund Khazanah Nasional Bhd. It shocked the market by announcing a whopping RM6.3 bil loss for FY18.
What’s really worrying is the fact the losses were mostly due to impairments of RM7.3 bil, an increase of 217% from 2017. Even more painful is the fact that half of the impairments in FY18 were from losses incurred by Malaysia Airlines (MAS).
Why did the impairments increase suddenly? Didn’t the previous Khazanah board, under former MD Tan Sri Azman Mokhtar, see the rising impairments in MAS? Surely the write-offs could not have emerged suddenly in the national flag-carrier. Has Khazanah been shielding this?
Recall that MAS was delisted from Bursa Malaysia after Khazanah paid minority shareholders 27 sen per share or a total of RM1.38 bil in 2014. Khazanah restructured MAS and laid off 6,000 employees while pumping in an additional RM6 bil. Under the recovery plan, MAS was supposed to be relisted on Bursa within three to five years, after having returned to profitability.
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