ACA probe at Pos Malaysia

ACA probe at Pos Malaysia
21 June, 2008

by Joyce Goh & Doreen Leong, The Edge

The Anti-Corruption Agency (ACA) paid a visit to Pos Malaysia Bhd's premises here recently as part of the agency's investigation into a matter, the details of which are still unknown.

Pos Malaysia acting managing director and chief executive officer Datuk Abu Huraira Abu Yazid confirmed the ACA visit and said it was co-operating fully with the ACA.

"We co-operated with them fully. We are not privy to the findings. They came in to check on certain things," Abu Huraira said.

Asked if the investigation was conducted on the company or any specific individual, Abu Huraira said it was a "general" investigation.

"I have no opportunity to get to see what happened. I have no record at this point in time what they have taken. We will co-operate fully.

"They asked in general. There is nothing for us to hide. We will co-operate with any part of the authority that is entrusted to do the job," he said.

Speaking to reporters after its AGM here yesterday, Abu Huraira also said it was reviewing its contracts with Transmile Group Bhd and Gading Sari Aviation Services Sdn Bhd based on the performance of the two companies.

"We have an arrangement with these two parties to handle our business to Sabah and Sarawak from April 1 to end of March next year. We have to see the performance because we will re-evaluate the whole thing. We have to review both parties," he added.

Asked if Pos Malaysia intended to reduce its 14.99% stake in Transmile, Abu Huraira said there was nothing on the plate for that currently. "We must give time for Transmile to turn around. First priority is for them to be cash-efficient," he added.

On the resignation of Tan Sri Adam Kadir as its chairman recently and that of Datuk Idrose Mohamed as its managing director and chief executive officer (CEO), Abu Huraira said both resignations were for personal reasons.

"We respect that and today we said we recognise the contribution of both of them and we wish them all the best," he said.

Sources said the Ministry of Finance was now vetting potential candidates for the posts of chairman, MD and CEO.

Meanwhile, a shareholder who spoke to reporters on the sidelines of Pos Malaysia's AGM yesterday told reporters that he had questioned the reason behind a contract given to a particular company.

"Way back in early 2006, Pos came out with a tender when they decided to stop Transmile's operation and 11 companies bid for this. The company that won the contract did not fulfil the tender requirements and yet they won the contract. Then, they were not performing but the contract was extended," he alleged.

Asked how Pos Malaysia awarded its contracts, Abu Huraira said they were given out through proper procedures and if it was of a specific minimal amount, the board would deliberate on it.