Wednesday, December 13, 2006

RM11b spent on takeovers

RM11b spent on takeovers

Wednesday, 13 December 2006, 20:15

RM11b spent on takeoversRM11bil bill for rescuing failed privatised units

©The Sun

B. Suresh Ram

KUALA LUMPUR (Dec 13, 2006):
The government spent more than RM11billion in taxpayers' money to take control of failed privatisation projects, the Dewan Rakyat was told today.

Replying to a supplementary question from Ismail Sabri Yaakob (BN-Bera), Deputy Minister in the Prime Minister's Department Datuk Abdul Rahman Suliman gave this breakdown:

RM3.256 billion for Star LRT.
RM4.486 billion for Putra LRT

Both Klang Valley-based light rail transit systems now come under Syarikat Prasarana Negara Bhd.

RM2.802 billion for Malaysia Airlines System Bhd
RM142 million for Seremban-Port Dickson Highway by Projek Lebuhraya Utara Selatan Bhd.
RM135 million for Bandar Kuching Prison with the Public Works Department taking over from a private company.
RM192.54 million for the National Sewerage Scheme from its previous concessionaire, Indah Water Konsortium.
RM8.3 million for the Muslim Food and Consumer Goods Research Unit, which now comes under the Malaysian Islamic Development Department (Jakim).

Abdul Rahman said these entities were taken over when they faced either financial or management problems.

"The government took control in terms of the equity whereas issues involving management were determined by committees established by the government," he said.

Abdul Rahman added that the government fully took over management of some entities like the Kuching prison whereas other entities like the National Sewerage Scheme saw the previous management from IWK being maintained.

To the original question from Ismail Sabri, Abdul Rahman said since 1983 when the privatisation scheme was launched, 490 projects had been privatised.

He said that only a few faced problems which required government intervention.

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