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Thursday October 3, 2013 MYT 12:00:00 AM
Thursday October 3, 2013 MYT 9:22:52 AM
PETALING JAYA: The scrutiny on government-linked companies rewarding their employees with bonuses despite making huge losses must be “fair and reasonable”, according to a GLC top executive.
Syarikat Prasarana Negara Bhd group managing director Datuk Shahril Mokhtar said these companies were providing public services and were operating under government-controlled tariffs or fares.
The Auditor-General’s Report revealed that seven GLCs rewarded their employees with bonuses despite recording combined losses amounting to RM2bil in 2011.
Prasarana topped the list of seven GLCs involved. The others are Mimos Bhd, Keretapi Tanah Melayu Bhd, Jambatan Kedua Sdn Bhd, Amanah Raya, Indah Water Konsortium and Cyberview Sdn Bhd.
Prasarana gave bonuses of one and a half to two months although it incurred losses of RM763mil in the year under review.
Of the losses, Shahril said, RM400mil was depreciation cost and RM300mil financing cost.
“People must understand that Prasarana is operating under a difficult environment of providing and upgrading public transport services,” he said yesterday.
“Our fare structure has not been reviewed for the past 12 years and we have to operate in non-profitable routes.”
About 80% of the bus routes it operates in the Klang Valley are non-profitable, Shahril said.
The company also owns and operates light rail transit and monorail lines in the Klang Valley and stage buses in Penang and Pahang.
Shahril said Prasarana had contained the losses by ramping up its non-fare revenue businesses, such as property development, advertisement and consultancy services.
“The bonuses are given based on our employees’ score card. We have to retain our talent as this (transport) industry is booming elsewhere around the globe,” Shahril said.
“If we don’t reward them appropriately, they will run away ... We are doing our best to be operationally sustainable and ultimately profitable.”
A Treasury official was reported to have said that the companies had not been set up primarily to make huge profits but to fulfil social responsibilities and nation-building objectives.
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Government, Parliament, Government, Auditor-General’s Report 2012
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