KUALA LUMPUR, June 16 ― The contractor that was awarded the project to construct the express rail link (ERL) extension from the Kuala Lumpur International Airport (KLIA) is also a major shareholder of the company that operates the train service, the Public Accounts Committee (PAC) pointed in a report.
The panel revealed that the major shareholders in YTL Sdn Bhd also own stakes in ERL Sdn Bhd, and that the vested interests in both the line’s builder and operator would be to taxpayers’ detriment.
“It renders it difficult for the government to get value for money (for the project).
“Apart from that it can create a conflict of interest between the shareholders and conflict of interest in the contract negotiations,” the report said.
In 2014, opposition lawmakers claimed that the contractor and operator of the 2.16km KLIA-KLIA2 ERL extension project got a “sweetheart deal” as the concession would last for 60 years.
Bukit Mertajam MP Steven Sim then claimed that from the rail extension alone, ERL Sdn Bhd would be raking in an additional revenue of RM89 million per annum. This, mainly from increased ridership.
The project cost RM100 million and was awarded via a grant.
But PAC noted that the government through Malaysian Airport Holdings Bhd was still collecting tax for the ERL even from none-passengers despite awarding the contract through a grant.
It also criticised the ERL operator for citing maintenance as justification for the RM2 charge on passengers taking the train from KLIA to KLIA2, since the opening of KLIA2 had doubled ERL’s load.
PAC recommended that Putrajaya review its decision to impose the RM2 fees as the firm’s profits had surpassed its target and it was already collecting airport tax or now known as the passenger service charges.
It was also calling on the National Audit Department to audit the concession of KLIA to MAHB and come up with suggestions that ensure value-for-money for passengers.
