This entry showcase another government idiocy of blatant abuse of rakyat money. A private company conned the government and either the government officers are into the fraud or they are incompetent on approving such "contract" where the government is subsiding the operation of Express Rail Link. See supporting articles at the second half of this post.

According to The Sun conservative estimates, at least RM80 million has been "given" to Express Rail Link since 2002.

Express Rail Link is owned by YTL Corporation Bhd (Equity share 50%), Lembaga Tabung Haji and Trisilco Equity Sdn Bhd (Equity share 10%).
YBhg. Dato' Mohd Nadzmi B. Mohd Salleh. Mohd Nadzmi is also the chairman of JT International Bhd and is associated with NU SKIN MALAYSIA HOLDINGS SDN. BHD.

That money (RM80 million) could have been used to upgrade the airports in East Malaysia such as Sandakan Airport, Lahad Datu Airport, Mulu Airport, Limbang Airport, Mukah Airport and Bario Airstrip.

So, who is the culprit in this scandal ? Ministry of Transport or Malaysia Airport Holding Bhd ? Or perhaps YTL or Lembaga Tabung Haji ?

Below is the photos of airports for your comparison:

The grand Kuala Lumpur International Airport

Long Lellang Airport, courtesy of

Mukah Airport, courtesy of

Mulu Airport, courtesy of

Marudi Airport, courtesy of

Sandakan Airport, courtesy of

If you like this informative post, please subscribe to my full RSS Feed


Source: (Apr 29, 2008)

Tee Keat probes ERL deal

Terence Fernandez

PETALING JAYA (April 29, 2008): The new administration of the Transport Ministry is probing the events leading to the contract which requires airline passengers from KL International Airport to subsidise the operations of the Express Rail Link (ERL).

Its minister Datuk Ong Tee Keat has requested information from Malaysia Airports Holdings Bhd (MAHB) on monies remitted from airport tax to Express Rail Link Sdn Bhd (ERLSB) which operates the service, following an expose by theSun last week.

The front-page report quoted sources as saying that airport tax of RM45 (international) and RM6 (domestic) at the KLIA and RM35 (international) and RM6 (domestic) at the Low Cost Carrier Terminal (LCCT) in Sepang could be cheaper but for a deal between ERLSB and the government.

Under the concession agreement signed in 1997, a portion of airport tax, RM2 from domestic travellers and RM6 from international travellers, goes towards financing the ERL’s construction and operations.

The service began operations in 2002, and air travellers have been unwittingly subsiding the ERL irrespective of whether they used the service or not.

“I am taking a special interest on this issue and I want to get to the bottom of this agreement,” Ong told theSun. “I have asked my officers to get me the documents.”

He said he has asked MAHB to furnish him with details, while ERLSB has also submitted a brief report on the deal.

“As Transport Minister, I am duty-bound to ensure that all agreements which concern public transport are in the best interest of the public,” he said, when told of ERLSB’s refusal to reveal details of the agreement and how much it has received from the taxing of airline passengers over the last six years.

Conservative figures put it at RM80 million a year, a figure which ERLSB has refuted. It has declined to reveal what the real numbers are, saying it’s a private company.

Ong said it was too early to reveal what he had learnt so far but assured the public that he will do so once his investigations were complete.

“I need time to pore over the documents and the fine print. I will get legal and expert opinions on the agreement before taking the matter up to the cabinet,” he said.

ERLSB operates under a 30-year concession, including the option to extend for another 30 years to own and operate the ERL.

YTL Corporation holds a 50% stake in ERLSB, while Tabung Haji Technologies Sdn Bhd owns 40% and the balance held by NadiCorp Holdings Sdn Bhd.



Related Posts with Thumbnails