KUALA LUMPUR: There is no issue involving mismanagement in Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) despite the Auditor General's Report 2/2024 findings on the company, said Transport Minister Anthony Loke.
"I don't foresee what it means by mismanagement, because the funds distributed by the federal government were meant for construction costs. In terms of finances, it's hard to recoup. However, we must remember that MRT is a government project.
"Since it is a government project, when there is an off-balance sheet, it will be borne by the government… There is a government guarantee.
"Therefore, the issue of MRT Corp not being able to pay its debts does not exist. MRT Corp is a government-linked company and the debt burden from construction costs is guaranteed and supported by the government, so that there is continuous payment.
"There is no issue that it is not sustainable," he told a press conference at the parliament building in response to a question by an industry expert on the audit report's classification of MRT Corp as lacking in financial stability.
Earlier, FMT quoted expert Wan Agyl Wan Hassan as saying that the finding does not reflect the true nature and purpose of the company's existence.
Wan Agyl said MRT Corp was established by the government as a special-purpose vehicle to develop and own all assets involved in the provision of MRT services in the Klang Valley.
He said the capital for the construction of MRT1 and MRT2 was provided by the government to MRT Corp, and it was always envisaged that Putrajaya would bear full financial responsibility for the development of the entire rail infrastructure.