Loke Questions Need For PAC To Probe RM10.7 Bln Electric Train Lease

PUTRAJAYA, Dec 18 (Bernama) -- Transport Minister Anthony Loke has questioned the necessity of a Public Accounts Committee (PAC) investigation into the proposed 30-year electric train lease project, valued at RM10.7 billion.

He clarified that the project is still conceptual and no contract has been finalised.

"I do not know what they want to investigate. The contract has not even been signed. It is nothing for them to investigate because this is still at conceptual stage.

“It has not even been signed yet as I mentioned in Parliament many times,” he told reporters after witnessing the signing ceremony between Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction (ECRL) Sdn Bhd (CCCECRL) here today.

On Dec 12, the PAC announced plans to initiate proceedings on five new issues during the upcoming Dewan Rakyat session.

Its chairman Datuk Mas Ermieyati Samsudin said the issues include airport management, domestic investments by Khazanah Nasional Bhd, and Kuala Lumpur Land Development.

It also includes proceedings on the private health services ecosystem, regulatory mechanism, legislative framework and financing method through medical insurance: Implications of Private Service Price Increases for Government Hospitals, as well as the Procurement of Electric Trains on Lease for 30 Years worth RM10.7 billion.

On Aug 14, Loke said the government has decided to adopt a new strategy for acquiring passenger train assets for Keretapi Tanah Melayu Bhd (KTMB) railway network through a leasing method.

He said the leasing method would be implemented through a government-to-government (G2G) mechanism between Malaysia and China to enhance the quality of public transportation services.

For Phase 1, which is from 2024 to 2027, this new strategy aims to add 62 new passenger train sets at an estimated cost of RM10.7 billion, to be paid in instalments over a 30-year lease period.

-- BERNAMA