KERETAPI Tanah Melayu Bhd (KTMB) had an accumulated loss of RM2.829 billion as of December 31 last year, said the Auditor-General’s Report 2018 Series 2.

One of the reasons cited by the report, released today, is KTMB lacking the freedom to make its own decisions, particularly on its operations and use of assets.

“This indirectly contributes to KTMB’s less-stable financial position, as it relies solely on train tickets. KTMB is also bound by government policy when it comes to setting train fares.”

The audit found that inter-city and commuter train services recorded losses of between RM39.82 million and RM77.76 million in the period between 2016 and July this year.

The commuter train service contributed the highest revenue for KTMB from 2015 to 2017, but recorded losses after operating expenses were deducted, said the report.

It added that passenger numbers and revenue for the service “did not reach the desired efficiency level”.

“The actual number of passengers and revenue recorded a drop from 2016 to July 2019.

“Another weakness is the delay in completing the Klang Valley Electrified Double Track (KVDT) project.

“This has disrupted commuters’ daily routine (74.2%), and some passengers have switched to other modes of transport (62.6%).

“Also, the longest waiting time for commuter trains is 256 minutes, or four hours and 16 minutes, compared with the 45 minutes set by the Land Public Transport Agency.”

Maintenance work on commuter trains is also not being carried out according to schedule, and there are “significant weaknesses” in the new ticketing system, with 36,860 complaints filed from December 2016 to July this year, it said.

In conclusion, said the report, the objectives of KTMB’s establishment through the corporatisation of KTM have yet to be fully realised.

It said KTMB’s corporate governance is satisfactory, but improvements have to be made concerning the company secretary, standard operating procedure, business plans and key performance indicators.

Among the auditor-general’s recommendations are:

* A review of KTMB’s management model;

* Ensuring that the KVDT project is completed according to schedule; and,

* Working with the Transport Ministry to prevent delays in train services and further losses. – Bernama, December 2, 2019.