Published: Wednesday November 4, 2009 MYT 3:31:00 PM
Parliament: RapidKL, Rapid Penang takeover is not bailout
KUALA LUMPUR: The takeover of RapidKL and Rapid Penang by Prasarana Sdn Bhd, a government-linked company, was not a bailout but to ensure the smooth operation of public transport services, the Dewan Rakyat was told on Wednesday.
Deputy Finance Minister Datuk Dr Awang Adek Hussein said both companies provided a social service and if the operation was managed by the private sector, commuters might not get the full benefits.
“In the hands of private companies, which are driven by profit, no buses would ply unprofitable routes with very few passengers travelling. But to the Government, it does not matter.
“We look at it as a service to the people. The question of a bailout does not arise,” he said when replying to a supplementary question from Datuk Zahrain Mohamed Hashim (PKR-Bayan Baru).
Zahrain wanted to know the losses incurred by RapidKL and Rapid Penang and the reason why both companies were bought over by Prasarana.
Awang Adek said RapidKL and Rapid Penang incurred losses due to the high cost of repair and maintenance of their buses.
“Through the takeover, RapidKL and Rapid Penang would be more focused on running the operation and eventually overcome the problem of integrating the public transport system,” he added. -- Bernama
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