Update - Auditor-General: Prasarana in danger of not meeting RM7.1b bonds payment

Update Auditor-General: Prasarana in danger of not meeting RM7.1b bonds payment

Tags: KL Infrastructure Group | National Audit Report | Syarikat Prasarana Negara

Written by Chan Kok Leong, Sharon Tan & Chua Sue-Ann

Monday, 19 October 2009 16:30

KUALA LUMPUR: Syarikat Prasarana Negara Bhd (Prasarana) in danger of not meeting its remaining bond commitments of RM7.1 billion if it fails to rectify its cashflow situation.

According to the National Audit Report: Ministries & Government-owned-companies (NAR), the government needs to take drastic actions to ensure that it does not need to bail out public transportation company.

“It is the view of NAR, that the ministry of finance needs to monitor the financial management of Prasarana to ensure that it is handled more efficiently to improve its cashflow.

“This is to avoid having the government being made to repay Prasarana’s bonds amounting to RM7.1 billion (principal) when they mature between 2011 and 2023,” the Auditor-General wrote in the 513-page report, copies of which were released to MPs on Monday, Oct 19.

According to NAR, the government had already paid out RM1.37 billion (principal and interest) to bondholders under Tranche 1 (RM547 million @ 3.3%) which matured on Nov 30, 2006. Under Tranche 2, it said RM820 million @3.5% was paid out on Nov 30, 2008.

Another point the audit report pointed out was the purchase of shares of an unprofitable company, KL Infrastructure Group Bhd (KLIG).

“Based on the directors resolution dated Feb, 21, 2002, Prasarana bought 52 million shares valued at RM26.52 million. This was equivalent to 10% equity in KLIG.

“Auditors could not find the justification for this purchase as KLIG was a company in financial trouble and had failed to complete the monorail project.

The shares bought at RM26.52 million had plummeted to RM6.76 million in 2007, it added.

“It is the view of this audit, that the share acquisition was a loss-making investment for the government.”

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Last Updated on Monday, 19 October 2009 17:35

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