Thursday 28 Mar 2024
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SEPANG: Transport Minister Datuk Seri Liow Tiong Lai (pic) has urged Malaysia Airports Holdings Bhd (MAHB) to be transparent in answering queries about a slew of irregularities that were uncovered during the construction of klia2 by the Public Accounts Committee (PAC) in its report to the Dewan Rakyat recently.

Liow, who was appointed in the aftermath of the loss of Malaysia Airlines flight MH370, said MAHB should respond “immediately” to queries posed by the PAC “and be transparent about it”.

He told reporters this after his first official visit to the RM4 billion low-cost carrier terminal, which the PAC dubbed a hybrid airport in its report after unscheduled cost increases and upgrades.

“MAHB needs to be transparent, accountable on the decisions [it] made,” Liow said, adding that as the transport minister, he will ensure that MAHB takes all queries from the public seriously.

In its report, the PAC said the klia2 project failed to pan out according to its original plan of replacing the low-cost carrier terminal.

PAC chairman Datuk Nur Jazlan Mohamed had called on the government to urge Auditor-General Tan Sri Ambrin Buang to conduct a complete audit on klia2 following the committee’s findings of irregularities in the project, including overblown costs from RM1.7 billion to RM4 billion.

However, Ambrin reportedly said he would need approval from the government as his department does not audit public-listed firms.

Yesterday, Liow said MAHB will carry out the necessary rectification works at the airport.

“When I visited the ponding site, it is not so serious as it does not affect operations of aircraft on the runway. Certain areas that need to be repaired will be closed,” he said.

Liow announced during his visit the panel members of the Transport Ministry’s independent audit committee will look into the klia2 project .

The members are Civil Aviation Department director-general Datuk Azharuddin Abdul Rahman, Public Works Department director-general Datuk Annies Md Ariff, engineering consultant G&P Professionals Sdn Bhd chief executive officer Datuk Dr Gue See Sew and Petroliam Nasional Bhd general manager Shobri Abu Bakar.

The committee will be headed by Federation of Engineering Institute in Asia and Pacific (FEIAP) president Datuk Dr Chuah Hean Teik.

Liow said the committee is tasked with ensuring that the terminal complies with various conditions and standards. It will also study safety aspects related to soil settlement that occurs at the airport’s apron area.

He gave an assurance that the independent audit committee’s report, which he expects to receive by the first half of next year, will be made public.

Liow promised that the ministry will take the necessary action against parties found to have committed irregularities in the project, but did not specify those actions.

MAHB managing director Datuk Badlisham Ghazali, who was present during Liow’s visit, said rectification works will be completed in the first quarter of 2016 and that they will be carried out in stages so as not to hamper the airport’s operations.

He said MAHB had only recently submitted two reports on klia2’s construction issues to the PAC. One was by independent engineering consultant Kumpulan Ikram Sdn Bhd and the other by the International Civil Aviation Organisation.

“I can confirm we have submitted the reports to the PAC via the Transport Ministry before it was closed,” he said, adding that both reports were handed sometime in October or November.

Badlisham stressed that the public will not bear the costs of the rectification works on klia2, saying that MAHB’s annual operating and maintenance allocations will be spent on the works.

“None of these [works] are being borne by the public in terms of added tax. This is normal operation and maintenance budget for us,” he said.

He said the works started in June and about 25% had been completed.

Badlisham reiterated that MAHB will heed the PAC’s recommendations in its report on klia2.

“We will study the PAC report and we are in the midst of preparing our response. We are deliberating with the board of directors on how to respond,” he added.


This article first appeared in The Edge Financial Daily, on December 12, 2014.

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