PAC: Conflict of interest found in payment for ERL project linking KLIA and klia2
Posted on 16 June 2015 - 01:44pm
Last updated on 16 June 2015 - 02:41pm
Last updated on 16 June 2015 - 02:41pm
KUALA LUMPUR: The Public Accounts Committee has found a conflict of interest in the payment of RM100 million in the Express Rail Link (ERL) project linking Kuala Lumpur International Airport (KLIA) and klia2.
PAC, in a report to parliament today, found the conflict arose in the direct negotiations as both the shareholder of the contractors, Syarikat Pembinaan YTL Sdn Bhd and Seri Yakin Sdn Bhd, and ERL Sdn Bhd are the same people.
"The justification to increase the charge of RM2 between KLIA and klia2 due to the maintenance cost for the ERL is not accurate. This is because the opening of klia2 has given a big impact in the overall increase of the number of ERL passengers," it said.
"The payment of RM100 million in grants for the project for the ERL link should be reviewed in-depth as the government has allowed part of the Passenger Service Charger channelled to the ERL to be part of its revenue even though users did not use the ERL service."
PAC carried a probe into the RM100 million ERL project after the 2.16km link project attracted the interest of the mass media, politicians and public and had a meeting on Sept 30 last year. The project was not audited and was not part of the Auditor-General's Report.
The report said construction work on the project began on July 15, 2011, and was supposed to be completed by Oct 31, 2012. But due to several problems, it was only completed by Oct 1, 2013.
PAC has called on the government to review the additional RM2 charge for several reasons including;
» the number of ERL passengers exceeded the original projection;
» the RM100million cost is from government grant;
» the link is built within the airport compound under Malaysia Airport Holdings Berhad (MaHB), and the additional RM2 fare should be absorbed by MAHB.
» the number of ERL passengers exceeded the original projection;
» the RM100million cost is from government grant;
» the link is built within the airport compound under Malaysia Airport Holdings Berhad (MaHB), and the additional RM2 fare should be absorbed by MAHB.
PAC also recommended an audit to be carried out on developments in KLIA and called on the government to ensure any revenue obtained by private companies from government grants should abide by regulation and policies.
"The government should look further into details to ensure any procurement carried out with private companies does not have any conflict of interests which would weaken the government's decision," it said.
