KUALA LUMPUR, Nov 25 – Malaysia Airports Holdings Bhd (MAHB) failed to meet the requirements and proposals of the stakeholders in the construction of the new low-cost carrier terminal, klia2, which resulted in the completion delay and cost overruns from RM1.7 billion to RM4 billion. This was the conclusion made by the Public Accounts Committee (PAC) after a one-year investigation on the project, and it subsequently proposed the Auditor-General to conduct a comprehensive audit on the construction of klia2.
PAC Chairman Datuk Nur Jazlan Mohamed said the project did not follow the original plans to build a low-cost terminal but instead was changed to a hybrid airport concept without considering the needs of the stakeholders and consumers. “MAHB did not take into account the proposals from several parties such as the Immigration Department and AirAsia in the original plan, so much so that the klia2 design had to be changed a few times even though construction has started.
“By right, all their proposals and requirements were included before construction starts,” he told a press conference at the Parliament building here Tuesday. Nur Jazlan said a performance audit should also be conducted on MAHB as well as the klia2 development model in terms of planning, implementation and finances.
According to him, even though the construction of the klia2 utilised MAHB’s funds and not public funds, the company is a government-linked company (GLC). “We are also informed that MAHB has been audited by an international auditing firm but that was only in terms of finances, and not in terms of its project delivery,” he said.
“Representatives from the Auditor-General’s Department were in our proceedings during the investigation and were informed of PAC’s conclusion and recommendations, so we hope this would facilitate their investigation,” he added. Besides that, he said PAC also requested the Auditor-General to identify the parties responsible for the issues and problems at klia2 so that action can be taken by the relevant authorities.
Nur Jazlan said PAC also urged MAHB to be responsible for the safety of consumers by implementing continuous monitoring to repair all cracks or soil-related issues according to the standrads of the International Civil Aviation Organisation (ICAO). MAHB was also asked not to impose or increase any charges rate at klia2 in order to recoup the airport construction cost.
“PAC urges the government to ensure the level of communication and cooperation between MAHB and the low-cost airline companies are strengthened so that the objective of making klia2 as the low-cost carrier hub in the region is achieved,” he added. MAHB was reported to have failed to complete the klia2 by its target date of September 2011 and the terminal was only opened on May 2, 2014.