Terima kasih mamakthir, apa lagi ko mau?

Acong_II · Post time 20-5-2016 08:28 PM

Lim Sian See
11 hrs ·

Previously it was leaked that Mahathir's govt approved that a portion of airport tax for every passenger flying from KLIA/KLIA2 be paid to ERL.

This amount increases every few years and is regardless of whether the passenger used the ERL or not.

And despite being paid this airport tax for years, the AG Report of 2015 released two days ago revealed that ERL which YTL is the largest shareholder, has written to govt to demand for RM2.9 billion compensation as their revenue projection was not met.

The AG report says that this compensation demand was based on projected earnings which were too high and unrealistic.

“The audit found that ERLSB’s actual revenue for the period between 2012 and 2014 was only between 11.5% to 13.7% of its projected revenues. This is a much lower figure than the projected sum,”

According to the concession agreement, the agreed fare for the 10-year period between 2009 and 2018 was set at RM56 and RM74 but govt allowed it to be raised to RM55 only this year.

On the excuse that fare increase was not granted between 2009 and 2014 and hence the highly inflated revenue projections in the agreement were not met, ERL demanded govt pay RM2.9 billion.

But the total investment by ERL was only RM1.4 billion - and most were paid using soft loans and capital from Tabung Haji and Bank Pembangunan.

And even if the govt paid this RM2.9 billion - double the cost of building this ERL - they still own the concession to make money and ask for even more compensation in future.

The audit report further stated that the agreed fare stated in the concession agreement was considered ‘high’ and could cause financial implications, in terms of compensation, to the government.

It suggested the government to reconsider methods used to calculate compensations and find a win-win solution for both parties.

This is on top of conducting a detailed review before signing any extended concession agreement with ERLSB.

In a response from the Transport Ministry dated March 17, it was stated that ERLSB has agreed to withdraw its demands for compensation, in exchange for a 30-year extension subject to negotiation expected to conclude by September.

This is a familiar story from Mahathir concession agreements where the projected traffic and revenues are outrageously inflated and if the figures are not met and fare increases not given then the company asks for huge compensation from the govt.

It is very very hard for Najib's govt to break these agreements unless an entirely new law for lopsided contracts is passed that allows cancellation of past agreements.

And even this is a controversial and risky move as financial markets and investors will think that Govt (whether BN or Pakatan) does not honour agreements.

Bottom line? We are stuck with Mahathir's privatization "mistakes" and stupid agreements unless the govt takes the risky move to pass new law and hope investors don't punish the govt.
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http://www.malaysiakini.com/news/342191

jahanam punya mamak kerala...........