Tuesday, May 13, 2008

Bad Judgement Wasted RM800 Million

An exposed issue on Keretapi Tanah Melayu Berhad's ("KTMB") bad judgement is on the cards now. Apparently, KTMB has purchased thirty diesel locomotives from China and USA respectively at a cost of RM20 million plus plus per locomotive. Total cost was around RM800 million.

What's the matter with these locomotives? They were built not according to specifications but it was still accepted by KTMB even though a negative assessment on the quality was made known to KTMB.

These locomotives are now being used as freight trains or just left to rot at the Sentul depot. As it not built according to specifications, the wheels do not match the track and can't operate on the recommended speed or it was needed more repairs than expected if forced to be used.

If this incident happened in the private sector, the employee(s) or even the whole management team could be held responsible and sued till they lose their underwears. But this happened in a government-owned entity. Where is the responsibilty and who will be held responsible for that RM800 million?

Just on the other hand, the Malaysian government was required to set aside RM725 million as rice subsidy to prepare for the worst case scenario in anticipation of the food crisis. The RM725 million was to be used to purchase 500,000 tonnes of rice from Thailand.

The government may have to spend additional amount of money to buy the correct type of diesel locomotives and such monies could have been used as rice subsidy instead.

People in the government are wasting away the monies whereby all taxpayers are the real losers. Why should we taxpayers be responsible for the diesel locomotives errors? Shouldn't the Anti-Corruption Agency be pro-active enough to initiate investigation now? The ACA is on the brink of being given with more authority and power. So why not show it now!

Day in day out reading all this wastages by respective government authorities are really disheartening. And when you are slow in paying up any nominal amount owing to relevant authorities, you would be penalised or even sued by them. Their case is in hundreds of millions but yet untouchables and nobody could question such discrepancies or mistakes.
Tags: Malaysia, Locomotive, Diesel Locomotive, Keretapi Tanah Melayu Berhad, KTMB, Rice Subsidy



Blogger .::JutawanSavvy::. said...

Well Sir,
Sometimes the Quality COntrol team have done with their limited power to addressed the matter to the top-management, but still I believe political connections overshadowed the reality of the decision making. I pitty this matter, but as long as politics undermining business sense, there will always case like this no matter how much accountability issues being raised in the public.

18 May, 2008 19:56  
Blogger Johnny Ong said...

i reckoned that this is more than undermining

19 May, 2008 17:11  
Blogger sooclara said...

well, i have the same thinking as you. sometimes, i really dont know where to stand to speak on behalf of msia when things that we see and understand happen in our very front eyes.

if this is continuing then when will we declared as "develop" country?

21 May, 2008 02:34  
Blogger Johnny Ong said...

this is one of the reasons that cost of living is increasing like mad in malaysia. 3rd parties getting involved all over the place have gotten all goods/services prices to increase in order to cover back those uncalled for expenses.

21 May, 2008 23:05  

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