KTMB recorded RM1.45b in losses up to 2008, says audit report

ARCHIVES 2010

By admin-s On Oct 26, 2010

(TMI) Keretapi Tanah Melayu Berhad (KTMB) recorded RM1.45 billion in accumulative net losses up until 2008 and can not “afford” to pay back its own operational costs and loans, according to the Auditor-General’s report tabled yesterday in Parliament.

The Auditor General, Tan Sri Haji Ambrin Buang said in the report that from 2006 to 2008, KTMB’s financial performance had been “unsatisfactory” where it had suffered from net losses after taxation for three consecutive years.

“In 2008, KTMB experienced losses amounting to RM118.91 million compared to RM82.81 million in 2007. Starting from 1994 to 2008, KTMB had to acquire the help of the government in the form of cash fund injections totaling to RM760 million,” said the Auditor General.

The A-G’s audit report stated that a RM36.60 million (44.5 per cent) increase in losses in 2008 was due to a sharp increase in its operational expenditure.

The expenditure, which totaled at RM49.03 million was 9.6 per cent higher than the total operating costs for 2007.

Besides that, the report noted that up until December 2008, KTMB had acquired five “easy loans” from the Federal Government amounting to RM880.50 million. All the five loans have fully matured as of July 2010, but annuity payments have yet to be made.

“The Audit finds that KTMB have not made payments to its loans for the past two to eight years,” said the report.

“This means that in 2010, annuity repayments need to be made for the five loans and this will result in the total annuity deferments to increase to RM703 million,” said the A-G’s audit report.