RM 100 million for the KLIA-KLIA2 rail line should not be born by taxpayers, said MP for Bukit Mertajam, Steven Sim, in his statement.  He asked why the asset expansion had to be footed by the government, when it is the YTL-linked company Express Rail Link (ERL) Sdn. Bhd that is profiting from the rail line.

He asked why the government was funding ERL Sdn Bhd’s rail line, when the later would charge RM 2 per person to commute the express rail.

Deputy Transport Minister Abdul Aziz Kaprawi dodged Sim’s question on the reason why RM100 million was not accounted for in the original cost of the project. Without explaining why the government was funding a private project that would profit the company, Aziz said that the government was building the public amenity for the people.

Sim also highlighted MAHB’s failure to include the rail line project in its allocation to build government facilities. MAHB has allocated RM582 million to build government facilities such as a new control tower, and roads for public access but did not include the RM 100 million for the express rail.

Though he doubted the problematic funding of the rail line, Sim added that he did not question the need for such a public amenity to be built.

The bearing of cost for the rail line was also previously questioned by Public Accounts Committee (PAC) Chairman Nur Jazlan Mohamed for burdening the taxpayer instead of the Malaysia Airports Holdings Bhd (MAHB). Nur Jazlan had said that the cost of the extension of the link should have been included in the KLIA2 project.

Socialising cost, privatising profit

Sim also asked why the government was helping ERL Sdn. Bhd. on its asset expansion using taxpayers’ money; highlighting that the ERL Sdn. Bhd, which is jointly owned by YTL Corporation Bhd, Lembaga Tabung Haji and Trisilco Equity Sdn. Bhd , would profit from the RM 2 fee for commuters and the expected 40 percent increase in ridership. 

This is akin to socialising the cost and privatising the profit of this project, he said. 

The Bukit Mertajam MP applauded Nur Jazlan for bringing the 100 million dollar discrepancy to the fore and urged the PAC to summon the Minister involved to appear before the committee and give a thorough report including why taxpayers’ money is being used to fund private concessionaire’s asset expansion.

“I also call upon the Auditor General to audit this project which is obviously problematic on many grounds but notably, for using tax money to help a private company expand their asset and increase their profit,” Sim concluded. -The Rocket