From The New Straits Times
1 July 2005

Explain Proton Boss told

KUALA LUMPUR, Thurs:
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Proton chief executive officer Tengku Mahaleel Ariff (picture) is in
hot water again, and this time, the consequences could be serious for
him.

The company’s board of directors called an emergency meeting last
night to discuss an interview he gave a Chinese daily two days
earlier, in which he was critical of the Government’s automotive
policy.

In the interview, Mahaleel lamented the "poor treatment" Proton was
receiving from the Government. Ironically, the Government is the major
shareholder in the company, through Khazanah Nasional.

The New Straits Times understands that Mahaleel did not attend the
meeting as he is in London on a business trip. But board members
placed a conference call to him during the meeting and asked him to
explain his comments in the Oriental Daily.

Mahaleel has been given until the weekend to reply to the board.

The board stayed silent today,The board stayed silent today with none
of the directors returning calls. It is not known what action will be
taken by the board should it not be satisfied with Mahaleel’s reply.
However, reports that he is to be sacked are untrue.

It is learnt that Datuk Azlan Hashim (picture), chairman of Proton
Holdings, called for the emergency board meeting. Today, Azlan
informed the Khazanah board meeting chaired by Prime Minister Datuk
Seri Abdullah Ahmad Badawi of the decision by the Proton board to seek
an explanation from Mahaleel.

Mahaleel could not be reached for comment, while Proton spokesman
Fauziyah Abu Hassan said the company would not be making any official
statement on the matter.

"I think the best persons that you can check with are the board
(members)," she said.

Proton became the country’s dominant auto-maker as part of the
Government’s industrialisation drive, which included slapping heavy
tariffs on foreign cars.

Proton’s market share has declined since rivals such as Toyota and
Honda launched more competitively priced cars.

This was not the first time Mahaleel has got into a scrap with the
board. He had problems with the board when it was controlled by
Petronas, and also when the national oil giant sold its stake in the
car-maker to Khazanah.

Earlier this year, Datuk Abu Hassan Kendut quit as Proton Holdings
chairman after a board decision not to renew Mahaleel’s contract was
overturned.

Mahaleel’s rise up the ladder in Proton has been meteoric since April
1996, when he was appointed as the company’s vice-chairman of strategy
and operations. He became the company’s CEO the following year.

Proton shares closed 15 sen lower at RM7.20 at the end of yesterday’s
trading on Bursa Malaysia.

http://www.nst.com.my/




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