DR M NOT SATISFIED WITH DPM'S EXPLANATION OVER PROTON SHARE SALE

TRONOH, Oct 17 (Bernama) -- Former prime minister Dr Mahathir Mohamad says he is
still not satisfied with the explanation by Deputy Prime Minister Najib Razak
over the decision to sell Proton shares in MV Agusta Motors Spa of
Italy.

Najib, who is also Finance Minister, told the Lower House of Parliament
Wednesday the decision to sell the stakes was made after thorough consideration
based on findings of an indepth re-investment study by advisory consortiums such
as Credit Suisse First Boston.

The study revealed Proton would be saddled with a whopping more than RM1
billion (US$284.49 million)debt if the stakes were not sold, he said.

Several legal firms in Italy also found MV Agusta's business model cannot
be
sustained in terms of finance and operations, said Najib in his written reply to
a question.

The former prime minister said he realised that, as a member of the
government administration, the deputy prime minister was duty-bound to defend
whatever action the government had taken.

"But to me there is no rational to sell the goods which we bought for
hundreds of millions (ringgit) for just one Euro.

"If anyone tells me, it's a profit, I think he should examine his mental
health," he told reporters after delivering a public lecture at Universiti
Teknologi Petronas.

When pointed out that the justification for the share sale was to spare
Proton from incurring over RM1 billion debt, Dr Mahathir said what was more
important was how the Proton management managed what they have acquired.

"If we don't know how to manage, then we will suffer losses. Acquiring a
company is simple but managing it is a different matter.

"If we want to avert losses, then we should not do business," he added.
-- BERNAMA