KUALA LUMPUR, 4 FEBRUARY 2020: Prasarana Malaysia Berhad today announced that it will be lodging a report with the Malaysian Anti-Corruption Commission and Companies Commission of Malaysia following the findings of its audit and forensic investigations over its involvement in the operations and maintenance of the MMMSL Project in Saudi Arabia from 2015 to 2018.
The MMMSL Project refers to the Al Mashaaer Al Mugaddassah Makkah Metro Southern Line between the Arafat 1 station and Jamarat station in north Mecca. On 16 April 2015, Prasarana, through its subsidiary Prasarana Integrated Management and Engineering Services Sdn Bhd (“PRIME”) was awarded a three (3) year contract to operate and maintain the line, taking over from China Railway Construction Consortium. The project caused Prasarana to incur audited losses amounting to SAR417 million for the financial year ending 31 December 2019.
Speaking at a press conference today, YB Dato’ Sri Tajuddin Abdul Rahman, Chairman of the Board of Directors for Prasarana Group of Companies, reiterated that Prasarana’s actions is in line with its commitment to good governance, transparency and accountability. Also present at the press conference was Datuk Dr. Yacob Mustafa, Chairman of the Audit Risk Committee.
“In a Board of Directors meeting that took place this morning, we are satisfied with the advice by the Audit Risk Committee that there are grounds for Prasarana to take this matter up with the authorities for proper investigations and ensuing legal actions to commence,” said Tajuddin.
The decision came at the conclusion of an 18-month internal audit and forensic investigation exercises that also included an audit review by PriceWaterhouseCoopers Advisory Services. Among others, the investigation reviewed MMMSL’s pre- and post-tender award processes, overall execution of Prasarana’s contractual obligations, and execution of the maintenance, repair, and overhaul issues pertaining to spare parts in the project and the involvement of the then officers and Board Members of Prasarana, Rapid Rail Sdn Bhd and PRIME.
“This was a challenging investigation as many of the key officers who were involved in the MMMSL Project have left Prasarana and/or PRIME and/or Rapid Rail. The long-distance nature of the Project meant that investigations required the co-operation from and assistance of previous subcontractors and consultants based overseas. Additionally, the investigators also needed to sieve through massive amounts of documents, transferred from Saudi Arabia to Malaysia,” explained Tajuddin.
Prasarana gave assurance that it will give the authorites its full support and co-operation in their investigations and related legal action. It hopes that the outcome of the investigations will enable Prasarana to chart its next course of action, including embarking on legal actions where appropriate.
“Moving forward, a Board Investment Committee has been established to look into Prasarana’s major investment and business ventures. The Board of Directors is very serious and committed in ensuring that Prasarana and its officers adhere to good business practice and proper corporate governance, and above all, are trustworthy, principled, and ethical in discharging their responsibilities.
Amidst difficult operating conditions due to the Covid-19 pandemic, Prasarana remains focused on providing safe and reliable transportation to the public. We will continue to evaluate and explore opportunities to improve our operations, increase ridership, manage cost and utilise technology to bring value to our shareholder and the Rakyat,” concluded Tajuddin.