Proton gives Mahaleel 1 week to explain

Proton Holdings Bhd has given its chief executive officer Tengku Tan Sri Mahaleel Tengku Ariff one week to explain himself over the alleged criticisms he levelled against the government’s automotive policy, sources said.
“Mahaleel has been told to explain why he made those remarks (that were critical of the government’s policy) and he has been given one week to do so,” said a source.
The source said Proton’s board made that decision after deliberating on the matter at an emergency board meeting.
It is learnt that Proton chairman Datuk Azlan Hashim briefed the government’s investment arm, Khazanah Nasional Bhd, yesterday on what transpired at the Proton board meeting and the decision it had taken with regard to Mahaleel’s remarks.
Azlan, who took over from Datuk Abu Hassan Kendut as Proton chairman last February, is a director of Khazanah, which holds a 42% stake in the national carmaker.
Mahaleel, who is now believed to be in London, courted controversy for his remarks made at a recent interview with vernacular newspaper Oriental Daily.
FinancialDaily reported yester day that the outspoken CEO may face censure or in the worst case scenario lose his job.
At the interview with Oriental Daily, Mahaleel claimed that the government’s policy had disadvantaged the national carmaker.
He made references to two other car companies, which have been given national treatment status and thus preferential tax rebates.
The market has been rife with rumour over the last few months that Mahaleel may be on his way out.
He is believed to have staved off at least two previous attempts to remove him. Last February, Proton’s then chairman Abu Hassan resigned after he was believed to have clashed with Mahaleel.
It was understood that former prime minister and current Proton adviser Tun Dr Mahathir Mohamad intervened to ensure that Mahaleel stayed on in office.