The Malaysian Insight

UTUSAN Melayu (M) Bhd, the company behind the Utusan Malaysia newspaper, has been ordered to submit a report to the Human Resources Ministry after delaying payments to staff who took up the voluntary separation scheme (VSS) offer.

“Utusan must honour the agreement it made with the employees who accepted the VSS offer,” Deputy Human Resources Minister Mahfuz Omar told The Malaysian Insight.

“The committee of trustees must submit a report to the ministry so that we can see what action needs to be taken.”

Utusan agreed to pay compensation in 12 instalments from December to some 800 employees who took its VSS scheme.

But the newspaper not only delayed the first instalment but paid out less than what was agreed. The newspaper said that it had encountered cash-flow problems.

The eight-trustee committee comprise four representatives from the Utusan unions and senior executives who took the VSS scheme.

“The employees can take legal action against Utusan for the late payment while we at the ministry are waiting for their official report,” said Mahfuz.

The Malaysian Insight reported that the former employees have not been paid according to schedule.

Former Utusan employees said they have only been paid RM1,000 since May.

The Malaysian Insight was made to understand that Utusan’s cash-flow problems stem from the fact that it hadn’t been paid from the sale of several assets.

A source said Utusan is still owed RM64 million from the RM85 million due to its former employees.

“The sale of assets is taking a long time to finalise,” said the source, adding that Utusan wanted to sell 26 assets to raise RM118 million. 

Umno sold its 31.6% stake in Utusan to Opulence Asia Sdn Bhd in February. Oppulence Asia is owned by CEO and former Bandar Baru Kulim MP Abd Aziz Sheikh Fadzil. – July 19, 2019.