GEORGE TOWN: The boss of a Penang government tech company said today major mobile telco companies were the culprits behind the red-flagging of uncollected RM2.2 million in rental for telco towers by the federal auditor recently.
PDC Telecommunication Services Sdn Bhd (PDC Telco) CEO P Ayappan Pillay said he had to “personally chase” after bosses of these telco companies to pay up
PDC Telco owns 63 of the 1,288 telco tower sites in Penang.
In the Third Series of the 2018 Auditor-General’s Report released in July, federal auditors found that PDC Telco has yet to collect over RM2 million in revenue from these tower sites, with arrears stretching up to six months.
Ayappan said weaknesses in the rental collection had been fixed after he took on the head honcho’s job in October 2018.
“So far, we have collected RM1.82 million and the balance is RM390,000. This is a 86% in reduction in what was owed to us.
“A new mechanism in debt collection has been implemented.
“I have recommended that a 10% late payment fee be imposed on those not paying on time,” he told reporters in the presence of state Utilities Committee chairman Zairil Khir Johari at Komtar here.
Ayappan said the financial standing and cash flow of PDC Telco had remained healthy with dividends amounting to RM10 million paid in 2018 and 2019 to its parent organisation, the Penang Development Corporation, a state statutory body.
The revenue of PDC Telco stood at RM10.6 million as of end-2018 and RM12.6 in 2019 with RM13 million expected for this year, Ayappan said.
“The company has also recorded profits for the past five straight years. Our liquidity and stability (level) shows that the company is able to settle its obligations at any time and also able to carry out planned activities,” he said.
As for the issue of telco towers that are not operating, Ayappan said two such towers were removed as they did not meet standards set by the state government.
Two others are already operational while another one will be online once the relevant approvals are given by the city council. - FMT
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