KUALA LUMPUR (July 26): An opposition lawmaker has questioned the ability of Prasarana Malaysia Bhd to continue as a going concern after the public transport firm allegedly chalked up debts of RM18 billion in 2015 with the figure set to rise further in 2016.

"When you have a government company with no information about its debts, and losses, you have to ask the question if it is a going concern," said Rafizi Ramli (PKR-Pandan).

"From my evaluation as an auditor and accountant, I have a strong reservation if it can continue unless there is a large injection of money from time to time, or a new round of debt erased by Prasarana," he told reporters at the Parliament building.

Rafizi said the government has yet to outline how Prasarana would bear the RM120 billion construction cost for the Sungai Buloh-Kajang mass rapid transit line (MRT Line 1).

He said based on Ratings Agency Malaysia Bhd (RAM) and the Companies Commission of Malaysia reports, Prasarana's operating cost in 2014 and 2015 versus ticket collection rose by 13% and 30% respectively.

"That means it is making annual losses from its operations whereas the interest paid on its debts amounted to RM551 million in 2015 and is expected to rise. Its total debt for 2015 is RM18 billion and will rise as it posts losses to bear costs.

"From 2013 to 2016, additional debts are expected to hit RM10 billion. So it is up to the government to inject money like it did in 2013, or erase its debts like it did in 2015 (RM475 million)," he said.

The PKR vice-president also claimed that Prasarana's losses from its involvement in two rail projects in Saudi Arabia is expected to hit RM142 million by May 2018.

He said the firm's management account relating to its outlook from year one to year three for the two projects — Al Mashaer Al Mugaddasah Metro Southern Line (MMMSL) and Maakh Shadow Operator — showed that they have been progressively reporting losses since June 2016.

Providing a screen shot of a slide given to him by a whistleblower, Rafizi said that in the first year (June 2015 to May 2016), Prasarana reported a loss of RM74 million after spending RM325 million as operations cost. Consultation fee amounted to RM251 million.

From June 2016 to May 2017 (year two), losses amounted to RM26 million despite Prasarana earning RM279 million as consultation fee, because it spent RM305 million on operations.

For June 2016 to May 2018, Prasarana projects RM42 million losses with RM301 million expected as consultation fee, and operational cost to be RM343 million.

Responding to Rafizi's oral question on the issue in the Dewan Rakyat, Prime Minister Datuk Seri Najib Razak said the value of the Saudi projects from December 2014 to May 2018 amounted to RM930 million.

"The total revenue as at June 30, 2017 is RM580 million while the entire fund that has been spent is RM679 million. To date, the receivables amounts to RM115 million. The contract lasts till May 2018, so we will continue to demand for the payment from time to time," Najib added.

When contacted, Prasarana said it is studying Rafizi's statement.