CAAM and Malaysian Police Intensify MYAirline Financial Investigations
The Civil Aviation Authority of Malaysia (CAAM) is set to re-audit the air operator certificate (AOC) renewal checklist for the now-insolvent MYAirline (MYM, Kuala Lumpur Subang), as reported by New Straits Times. Simultaneously, the Royal Malaysian Police are escalating investigations into MYAirline’s funding sources, particularly focusing on transactions involving major shareholder Allan Goh Hwan Hua and the entity i-Serve Online Mall Sdn Bhd (ISOM). Here’s a detailed breakdown of the developments:
- CAAM AOC Renewal Audit:
- CAAM intends to conduct a thorough re-audit of MYAirline’s AOC renewal checklist, with a focus on specific technical areas. This includes scrutinizing MYAirline’s Continuing Airworthiness Maintenance Organisation (CAMO) and Approved Maintenance Organisation (AMO) status.
- MYAirline suspended all flights on October 11, 2023, just eleven days after CAAM approved a two-year extension of its AOC. CAAM CEO Norazman Mahmud mentioned that the extension was granted based on an audit conducted in May, during which no warning signs of financial trouble were identified.
- CAAM suspended MYAirline’s AOC on October 16 for 90 days to allow for a comprehensive investigation and audit of the airline.
- Police Investigations into Funding Sources:
- The Royal Malaysian Police, particularly the Commercial Crime Investigation Department (CCID), are intensifying investigations into MYAirline’s financial affairs and the role of major shareholder Allan Goh.
- CCID Director Seri Ramli Mohamed Yoosuf revealed ongoing scrutiny of two years’ worth of transactions at i-Serve Online Mall Sdn Bhd (ISOM), a company in which Goh is a major shareholder. The investigation aims to establish any links between ISOM and the funding of MYAirline.
- Allegations include potential money laundering and the misuse of investor funds. The CCID is examining transactions involving multiple companies, including i-Serve and MYAirline.
- Arrests and Assets Seizure:
- Allan Goh, along with his wife and adult son, spent time in police custody for inquiries. Goh was released without charges after assisting with the investigation.
- An unnamed associate of Goh’s has been arrested, aiding police inquiries. Frozen bank accounts connected to this individual contain approximately MYR5 million ringgits (USD1 million). Authorities have seized various assets, including documents, laptops, watches, cars, jewelry, and handbags.
- The CCID does not rule out additional arrests as the investigation progresses.
These developments underscore the complexity of the investigations surrounding MYAirline, encompassing regulatory oversight and financial scrutiny. The outcomes will shape the understanding of the circumstances leading to MYAirline’s suspension and contribute to potential legal actions.