2 February 2020

Press Statement by MCA Civil Society Movement Coordination Bureau Chairman, Sdr. Ng Kian Nam

Anthony Loke evading responsibility over AirAsia-Airbus graft allegations

The MCA Civil Society Movement Coordination Bureau is dissatisfied with the answer given by Transport Minister Anthony Loke and his passive attitude when questioned regarding the allegations of graft implicating 2 executives of AirAsia Bhd as exposed by the foreign media and the United Kingdom’s Serious Fraud Office (UKSFO), as it only serves to highlight his ignorance towards commercial integrity.

The operations of all listed airline companies in Malaysia has always fallen under the jurisdiction of the Transport Ministry. As such, Anthony Loke as the said minister is being extremely irresponsible by passing the ball to AirAsia, telling the media that it is AirAsia’ prerogative to answer to claims of Airbus bribery and at the same time claim ignorance over the allegations, even more so as it is a major international scandal involving the largest domestic airline company in Asia. 

Furthermore, British authorities conducting the investigation are reported to have invoked Section 7 of the UK’s Bribery Act 2010 which covers “failure to prevent bribery” and is aimed to set out a company’s liability for corrupt activity committed by their employees or associated persons. This is similar to our very own Section 17 of the Malaysian Anti-Corruption Committee Act 2018 stipulating the offence of accepting gratification by any agent as inducement or reward in relation to his principal's affairs or business.

So other than MACC to be involved in the investigation process, it is also up to Anthony Loke to confirm whether AirAsia Bhd’s Air Service License were issued by his Transport Ministry in accordance with the existing Malaysian Aviation Commission Act 2015. Also, he must clarify whether his Transport Ministry has any authority to intervene in the investigations, including identifying if AirAsia Bhd has been involved in any improper commercial transactions, as well as reviewing the company’s Air Service License so as to safeguard the interest of all the airline’s passengers?

It must also be noted that this is not the first time where Anthony Loke had evaded responsibility when the public transportation operators were suspected to be involved in these kinds of integrity problems. Previously, Malaysia’s largest e-hailing company Grab was accused by the Malaysia Competition Commission (MyCC) of abusing its dominant position to impose restrictive clauses against its own drivers, and had even proposed a fine of RM86.8 million. Although it is clearly the Transport Ministry’s responsibility to issue the required license for e-hailing companies, yet Anthony Loke had failed to act against this unhealthy anti-competitive behaviour, thereby ignoring the public interests of its drivers and consumers.

In addition, before his appointment as Transport Minister, Anthony Loke had also promised to abolish the “Kopi-O” license culture prevalent in the Road Transport Department (RTD). However, two years on, this culture is still very much in existence, and even seems to have increased. When questioned, Anthony Loke had passed the buck over to the driving academies and MACC, in total disregard to his earlier promises. 

Thus, the minister’s continued lackadaisical attitude towards this current scandal will only serve to further encourage further acts of bribery, and this is not conducive towards creating a clean, transparent, accountable and more efficient government.  

Ng Kian Nam
MCA Civil Society Movement Coordination Bureau Chairman

-MCA online-