KUALA LUMPUR: The objective of Rapid Rail Sdn Bhd to provide urban rail services has been achieved where the output performance involving targeted key performance indicators reaching 91.9 per cent for the period 2018 to 2020.
For performance results, however, the services provided have not reached the optimum level for travel time intervals during peak hours due to lack of trains, according to the Auditor-General's Report (LKAN) 2020 Series 1, released today.
The report stated that the management of urban rail service activities, which includes the management of rail operations revenue as well as infrastructure and facilities management at rail stations, did not reach the required level of efficiency.
"Overall, corporate governance practices are at a good level but need improvement in five aspects, namely the board of directors, company secretary, chief executive officer, standard operating procedures, and the nomination and remuneration board committee.
"In terms of financial position, Rapid Rail is at a less stable level as it recorded a loss of RM144.77 million and an owner's equity deficit of RM306.38 million. The accumulated loss was RM690.83 million," the report said.
The report noted that in order to improve the performance of urban rail service activities as well as strengthen corporate governance, the management and board of directors need to take effective measures such as ensuring rail services are provided at an optimum level and in accordance with the set intervals.
"Besides that, the adjustment of rail fare rates should be considered to cover the increasing operating expenses.
"Rapid Rail needs to improve officers' skills and monitoring, especially at the operational level so that errors in revenue accounting do not recur and maintenance records are always updated," the report said.
The Audit Department also recommended that stakeholders should follow up more effectively on electricity tariff reduction applications to ensure rail operations cover operating expenses.
"The company needs to provide infrastructure and facilities that comply with the rules as well as declare rail tracks as restricted areas to prevent track encroachment at all stations," the report added.
-- BERNAMA
Bernama
Tue Mar 22 2022
The objective of Rapid Rail Sdn Bhd to provide urban rail services has been achieved where the output performance involving targeted key performance indicators reaching 91.9 pct for the period 2018 to 2020. - Rahimah Abdullah
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