Owing RM70 Mil In Airport Taxes, DCA Can Suspend Malindo Air Operations

The Department of Civil Aviation (DCA) has the authority to suspend the operations by Malindo Air if the company refuses to agree with the terms to pay its outstanding airport taxes of RM70 million.
 
Former managing director of Malaysia Airlines (MAS), Tan Sri Abdul Aziz Abdul Rahman said the sum of unpaid taxes is very high and Malindo Air might be the first airline company to breach the terms set by the DCA.
 
He clarified that the DCA has the authority to suspend Malindo Air for breaching the terms and conditions in airports that have also been set by the department.
 
“No other airline company have avoided paying their airport taxes so far. Malindo Air has a huge operation, how can they not pay?
 
“There is probably some other problem that causes the company to not be able to follow the terms,” he said to Utusan Malaysia.
 
The issue has raised concerns by various parties, including a member of the UMNO High Council, Datuk Dr Mohd Puad Zarkashi who asked Transport Minister Datuk Seri Liow Tiong Lai to remind the airline company to pay its taxes quickly.
 
Abdul Aziz added the Malaysia Airports Holdings Berhad (MAHB) and DCA will investigate the problem that is experienced by Malindo Air which may be caused by bad financing.
 
Both organisations are also required to investigate matters regarding airplane maintenance, spare parts and other technical issues.
 
“I am worried if the company have problems other than just financial ones.
 
“The most important thing right now is the safety of the passengers,” said Tan Sri Abdul Aziz.
 
Malindo Air’s ownership and business operations in Malaysia came under scrutiny recently, with UMNO Youth questioning the ownership of the company, on top of its outstanding taxes.
 
“We want an explanation if it is true that the airline CEO, Chandran Rama Muthy and his wife suddenly have 46 per cent of shares in the company,” Umno Youth assistant secretary Datuk Mohamad Sahfri Ab Aziz said during a press conference on Wednesday.
 
Tan Sri Aziz commenting on this had queried what was the fuss over a non-Malay being a majority shareholder, as long as the individual is a Malaysian.
 
“Why are they (UMNO Youth, Perkasa) making so much noise? According to existing laws, as long as the company is owned by a Malaysian there is no problem, doesn’t matter whether the person is Malay, Chinese or Indian.
 
“He is Malaysian, right? So, there is no problem,” Tan Sri Abdul Aziz told FMT about the controversy over the Malaysian businessman of Indian ethnicity who was revealed as the majority Malaysian shareholder.
 
Chandran became a majority shareholder in the company after Putrajaya-owned Bumiputera company National Aerospace and Defence Industries (Nadi) drastically reduced its stake in Malindo from 50 per cent to five per cent in February this year.
 
Source : http://www.malaysiandigest.com/frontpage/29-4-tile/690848-owing-rm70-mil-in-airport-taxes-dca-can-suspend-malindo-air-operations.html
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