Bonus for Prasarana staff despite plunging into red

AUDIT REPORT Despite ever deepening losses, government-linked company Syarikat Prasarana Negara Bhd (Prasarana) staff were still rewarded with bonuses of up to two months' salary, the Auditor-General's Report 2012 says.

Despite its losses deepening from RM367.12 million in 2009 to RM763.94 million in 2011, Prasarana paid its staff bonuses from one-and-a-half to two months' salary.

One of 20 GLCs audited on a three-year losing streak, from 2009 to 2011, Prasarana's staff were not the only lucky ones.

Keretapi Tanah Melayu Bhd, Jambatan Kedua Sdn Bhd, Indah Water Konsortium Sdn Bhd (IWK), Cyberview Sdn Bhd and Mimos Bhd paid their staff bonuses of between half-a-month and three months' salary.

Amanah Raya Bhd, meanwhile, paid ex-gratia of RM1,000 to all its employees.

All the above companies sustained losses of between RM4.6 million and RM763.94 million in 2011, with KTMB, Jambatan Kedua and IWK sustaining a three-year losing streak.

KTMB, which is often in the news for spilling red ink on its ledgers, however, managed to slash losses from RM372.01 million in 2010 to RM103.66 million in 2011.

Social obligations

According to the Finance Ministry, the bonuses were paid despite the losses as the company had hit yearly Key Performance Indicators.

"Besides that, most of these companies were formed to fulfil social obligations, including to assist in development, and not for profits," the Finance Ministry said.

Of the 57 companies audited, 37 made profits of a total of RM102.36 billion - eclipsing the collective losses of the remaining 20 companies of RM2.154 billion.

For example, UDA Holdings Bhd's profit shot up to RM549.43 million in 2011, compared with RM37.72 million in 2010, while Khazanah's profit more than doubled to RM16.34 billion in 2011.

Meanwhile, in Kelantan, profitable GLC Infra Quest Sdn Bhd paid its staff a generous six months' bonus, totalling RM220,617 in 2009 and RM256,694 in 2011.

The auditor-general says that the bonuses were paid out without state government approval.

However, the Kelantan State Economic Development Corporation said approval was given after the fact, in March 2013.

IQSB's profits before tax were RM7.51 million, RM13.83 million and RM8.81 million respectively from 2009 to 2011.