KUALA LUMPUR – Prasarana Malaysia Bhd has yet to fully settle the RM700 million said to be owed to its turnkey contractor for the LRT3 project, MRCB-George Kent (MRCBGK), as the payment is not due yet.
This is according to Datin Norlia Noah, who was just appointed the group’s acting president and chief executive officer on February 22.
Speaking at a press conference today, Norlia said to date, Prasarana has only released RM375 million in January for work done on the rail project, based on a previously agreed due date.
“When we make a payment, there is a time frame we need to follow. We will pay progressively,” she said, adding that invoices from MRCBGK usually reach Prasarana every 1½ months.
Norlia was asked for an update on the RM700 million that MRCBGK claims Prasarana owes it.
In a statement on January 4, MRCBGK had claimed that Prasarana’s payment made on October 2 last year was for construction work done by the end of June 2020.
It said that there are still delayed payments amounting to RM700 million for the period July 2020-October 2020, which have been certified by Prasarana’s appointed independent consultant, KL Prima Consult Sdn Bhd.
Just a week later on January 10, Prasarana released RM375 million, slightly more than half of the owed amount.
Meanwhile, Prasarana chairman Datuk Seri Tajuddin Abdul Rahman said the reason payments sometimes get delayed is because payments in large amounts must be verified by consultants and the project team.
“This is not a small amount, and involves public money. We cannot just simply pay without checking and verifying,” he said.
Additionally, Tajuddin reiterated that any payment must also consider the state-owned public transport firm’s financial position, whether there are cash flow issues or shortfalls that could affect its operations.
“If we have no money to pay salaries and utilities, then how to continue operations? We have to take that into consideration.
“In fact, our revenue the past year dropped by 70% because of the pandemic. So how do we offset the shortfall?” – The Vibes, March 9, 2021
