CEO Morning Brief

PAC to Initiate Proceedings Over MLFF Project

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Publish date: Tue, 23 Jan 2024, 05:40 PM
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TheEdge CEO Morning Brief
Datuk Mas Ermieyati Samsudin

KUALA LUMPUR (Jan 22): The Public Accounts Committee (PAC) is set to launch a probe into the multi-lane free-flow toll system (MLFF), according to its statement released on Monday.

In the statement, PAC chairperson Datuk Mas Ermieyati Samsudin said that the committee members have unanimously agreed to initiate proceedings regarding the management of the MLFF's implementation by the Ministry of Works.

In addition to summoning highway operators to provide insights into the MLFF implementation, the PAC will also summon representatives from the Ministry of Works and the Malaysian Highways Authority (LLM), Mas Ermieyati said.

The proceedings will be conducted under Dewan Rakyat’s Standing Order 77(1)(d), Treasury Instruction 301 Year 2023, and Section III Article 11 (b) General Circular No. 2 (1982), she added.

However, Mas Ermieyati did not elaborate on what prompted the PAC’s probe into the MLFF.

The MLFF is a barrier-free system designed to replace the existing booth-based toll collection system with an overhead structure called a gantry. This gantry would collect tolls using radio-frequency identification devices (RFID) in conjunction with an automated number plate recognition (ANPR) system.

The proposed MLFF system is estimated to cost RM3.46 billion for 33 highways in Malaysia currently.

A report by The Edge Malaysia weekly, citing sources, has confirmed that a private entity — 60% controlled by YTL Corp Bhd and 40% owned by a state-owned entity — organised a briefing with LLM and the Ministry of Works in July 2023 to present its proposal for the implementation of MLFF to highway concessionaires.

However, the YTL-linked proposal reportedly faced resistance from toll concessionaires who criticised the private entity's lack of track record, expressing concerns that allowing a third party to take over toll collection might result in leakages.

Proceedings on AG's Report 2022 findings completed

Meanwhile, Mas Ermieyati said that the PAC has completed proceedings for all seven issues selected from the Auditor General's Report for 2022.

The issues included the Langkawi Development Authority's (Lada) management of property development; Integrated Foreign Workers Management System (ePPAx) and Foreign Workers Centralised Management System (FWCMS); UiTM Holdings Sdn Bhd company, forest management and environmental impact; National Flood Forecasting and Warning Program; and management, upgrading and redevelopment of dilapidated school buildings.

She said that the PAC has fully completed proceedings for three issues, namely Lada's management of property development, UiTM Holdings Sdn Bhd Company, and the National Flood Forecasting and Warning Programme.

"Proceedings for the other four issues will continue with follow-up sessions, as the PAC believes that there are still explanations to be provided by the ministry concerning the topics involved," she added.

She also said that the PAC will conduct a working visit to Sarawak and Sabah to inspect dilapidated buildings in schools to complete the proceedings related to these issues.

Mas Ermieyati affirmed that the PAC is committed to presenting all reports to Dewan Rakyat, which is scheduled to begin on Feb 26.

Source: TheEdge - 23 Jan 2024

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