Transnasional fiasco proves failure of privatisation, says MB

Dec 14: Selangor Menteri Besar Khalid Ibrahim (pic) said the crisis faced by Konsortium Transnasional (KTB) in its Cityliner bus services proves that the Federal government’s privatisation policy was a failure. Khalid was reacting to KTB’s request to the state government to offer it financial lifeline in order to resume its suspended Cityliner bus services. Khalid said it showed that the original aim of privatisation in order to reduce the government’s burden had gone awry. “After so long, the government provides a conducive business environment which guarantees continuous profit but when the business suffers losses, the government is forced to bear the burden to rescue the company. "The government must stop giving out to businesses that are just  to benefit individuals under the privatisation scheme,” stressed Khalid. Yesterday, citing citing huge losses, KTB announced the suspension of its Cityliner bus services, affecting more than 80,000 public transport users across Selangor. “We are losing about RM8 million a year in Selangor. We appeal to the state government to take necessary measures to help us,” said KTB executive director Tengku Hasmadi Tengku Hashim. Khalid meanwhile has asked Public Land Transport Commission (SPAD) to solve the public transport crisis by holding a discussion with KTB immediately. “We will discuss with SPAD to find alternative solution if the problem cannot be resolved,” he added. The main issue plaguing KTB, said Khalid, is the cross-subsidy given by the Federal government to KTB. “The license awarded to KTB allowed Cityliner to provide services on profitable routes which could sustain the operation for unprofitable routes. That is the basis of the agreement,” he added, and said it was unfair for the company to continue operating on profitable routes only and ignoring the original intention of the license.