Guan Eng: Why refuse RM10mil for free bus rides?

Penang Chief Minister Lim Guan Eng has questioned Prasarana for its refusal to accept RM10 million annually to provide free bus services throughout Penang during peak times, totalling seven hours.

This sum could reduce its RM763 million losses recorded in 2011, Lim said in a press statement today.

Government-owned Prasarana was set up to facilitate, undertake and expedite public infrastructure projects. It operates the Light Rail Transit (LRT) and KL Monorail systems, as well as bus operations in the Klang Valley, Penang and Kuantan.

Lim (left) stated that the RM10 million offered would had given 1.6 million Penangites free bus rides from 6-9am and 4.30-8.30pm.

"The refusal to accept money offered to help increase public transport usage in Penang is not only irrational and unprofessional but also irresponsible."

According to Lim, Prasarana group managing director Shahril Mokhtar identified that of the RM763 million lost, RM400 million was due to depreciation costs and RM300 million to heavy investment in public transportation.

He added that the company is operating under government-controlled fares, which could not be increased to reflect rising costs.

Bonuses paid despite losses

Despite the losses, Prasarana still managed to pay its employees between 1.5 to two months in bonuses, stated Lim.

The Auditor-General's Report 2012 had revealed seven government-linked corporations (GLCs) rewarded their employees with bonuses despite recording combined losses amounting to RM2 billion in 2011.

According to Lim, the government-owned Cyberview company paid its staff two and a half months bonus despite losing RM254 million.

Cyberview Sdn Bhd is the landowner of Cyberjaya and is responsible for the development of Cyberjaya.

Lim also stated that in 2011, the federal government employees were given a one month bonus or a minimum of RM1000.

He added DAP supports the giving of annual bonuses to government employees to help reduce their costs of living despite the federal government's budget deficit for the past 15 years.

"The question asked by the public and the 1.2 million civil servants not working in the GLCs, is why staff working in GLCs receive higher bonuses than the ordinary civil servants?

"This issue would not be controversial if the GLCs were making profits," said Lim.