Explain RM150m ‘afterthought’ overrun

Azman Habu

A MP wants to know why the government is still protecting the monopoly of MASwings for airfreights into the Sabah interior despite its operational losses.

TAWAU: The Transport Ministry has been asked to explain the RM150 million cost overrun for a lopsided agreement for the airfreight of goods and services to the interior of Sabah and Sarawak.

MP Chua Soon Bui sought the clarification after it was revealed that the costly re-delivery adjustment was made for eight Fokker 50 planes to serve the interior parts of the two states.

“The people deserve to know whether the overrun cost of RM150 million would be eventually borne by the consumers by way of fare increases in the interior sectors,” she said.

Deputy Transport Minister Jelaing anak Mersat had said that the RM150 million to MASwings was for aircraft rental, loss in operation cost and incentives.

He added that MASwings would no longer be using Fokker-50 planes and the cost incurred was also to service these planes and return them to Penerbangan Malaysia Bhd.

Chua, who is also vice-president of Sabah Progressive Party (SAPP), said it was not acceptable as the overrun cost of RM150 million was not estimated in the 2011 budget.

She added that the increase in administration cost this year was added as an “afterthought”.

She said the government transformation programmes under the Prime Minister’s Department should evaluate the 20% under-estimation of administration costs in the 2011 budget.

“The people deserve to know whether these costs are a wastage or leakage of public funds, and that such abuses should be curbed,” she said.

“The ministry should also explain to the people why the lease of MASwings planes was not direct but has to go through Penerbangan Malaysia, as the lopsided contract has aggravated the cost.

“In the end, it’s always the wastage or leakage of public funds that has be shouldered by the people.”

Chua called for an open policy for air transport companies serving the rural areas and long-term measures for better roads and transport systems for Sabah and Sarawak to keep costs down.