.jpg "PDC Telecommunication Service CEO P. Ayappan speaks to reporters during a press conference at Komtar, George Town September 3, 2020. u00e2u20acu2022 Picture by Sayuti Zainudin")
GEORGE TOWN, Sept 3 — PDC Telecommunication Services Sdn Bhd has collected a total of RM1.82 million out of the RM2.21 million structure rental revenue arrears mentioned by the 2018 Auditor-General's Report (Series Three).
PDC Telecommunication Chief Executive Officer P. Ayappan said it has already implemented a mechanism to collect rental arrears since 2018.
“Since then, we have already recovered RM1.82 million, leaving only a balance of RM390,000,” he said in a joint press conference with state exco Zairil Khir Johari.
He said the company has successfully reduced rental arrears by 86 per cent.
He added that these were structure rental owed by telecommunication companies.
He said these telco companies had failed to pay the rental regularly, with PDC Telco coming up with a mechanism to ensure a more efficient collection of rentals.
Zairil said these telco companies will be given a stern warning to pay up any arrears in rental. Otherwise they would not be allowed to continue renting the structure.
PDC Telco, a wholly owned subsidiary of Penang Development Corporation (PDC), is a network facility provider that puts up telco structures on state land and rent them out to telco companies.
The A-G’s Report had also found that the appointment of contractors by PDC Telco were not in accordance with procedures.
Ayappan said the weaknesses pointed out by the report have already been rectified in 2018 with a new Standard Operating Procedure.
He stressed that PDC Telco’s financial situation is still strong as it had paid out dividends totalling RM4 million in 2018 and RM6 million in 2019 to its parent company, PDC.
“PDC Telco has recorded profits for five consecutive years and our company’s stability meant that we are able to fulfill our planned activities at any time,” he said.
PDC Telco recorded revenue of RM10.61 million in 2018 and RM12.66 million in 2019.
“We are expecting to record total revenue of RM13 million for 2020,” he said.
As for the issue of illegal telco structures put up by the company, as mentioned in the report, Ayappan said all five structures obtained early approval from state authorities and were built in 2010.
“However, the enforcement of Penang Guidelines and Procedures in the Construction of Telco Towers and Structures in 2015 found all five structures did not meet requirements in the guidelines,” he said.
He said PDC Telco has demolished two of the structures while three others were not in operation until it met with requirements under the guidelines.
