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[h=2]SMRT CEO: We are accountable to shareholders[/h]
October 1st, 2012 |
Author: Correspondent
In an interview with ChannelNewsAsia, SMRT Interim CEO Tan Ek Kia said his successor Desmond Kuek, the former Chief of Army, will need to do more to restore public confidence in this means of public transport. The outgoing CEO praised Desmond Kuek for having a “proven track record” when the former civil servant actually has no experience of managing a train company and has never stepped foot in a listed company. Why is someone from the army chosen to be the CEO of SMRT? Do you think he is better and more experienced than any Singaporean who has worked for SMRT for many years? All these questions are unanswered.
Tan Ek Kia emphasized the profits of SMRT which have been hurt by the series of train disruptions. He reminded everyone that SMRT is a listed company and that it is ultimately answerable to its shareholders. Despite the fact that SMRT has monopolized Singapore’s train system, Tan said he is improving revenue by “promoting ridership” and enhancing the non-fare business arms of SMRT. There is no mention of the anguish and inconvenience caused to affected commuters and how the train corporation is going to be answerable to Singaporeans as opposed to investors.
The Public Transport Council oversees any train fare adjustments SMRT would like to make, but the statutory board has to date approved every single request by the train company to raise fares. While the nationalization of Singapore’s train system brought about an efficient and low-cost public service to Singaporeans in the past, privatization today has led to corporate greed and incompetencies. That SMRT did not raise its maintenance budget for ten years is widely believed to be the main cause of the slew of paralyzing breakdowns. Ever rising train fares have enabled the company to report tens of millions of profits every year. The PAP government has created a 1.1 billion fund using Singaporeans’ tax money to help SMRT and SBS pay for 550 new buses. It is now apparent that profits are privatized and losses are nationalized.
PAP MP Lim Biow Chuan has suggested that SMRT apply for welfare from the government to helping them cope with the loss of income from the breakdowns:
Tan Ek Kia emphasized the profits of SMRT which have been hurt by the series of train disruptions. He reminded everyone that SMRT is a listed company and that it is ultimately answerable to its shareholders. Despite the fact that SMRT has monopolized Singapore’s train system, Tan said he is improving revenue by “promoting ridership” and enhancing the non-fare business arms of SMRT. There is no mention of the anguish and inconvenience caused to affected commuters and how the train corporation is going to be answerable to Singaporeans as opposed to investors.
The Public Transport Council oversees any train fare adjustments SMRT would like to make, but the statutory board has to date approved every single request by the train company to raise fares. While the nationalization of Singapore’s train system brought about an efficient and low-cost public service to Singaporeans in the past, privatization today has led to corporate greed and incompetencies. That SMRT did not raise its maintenance budget for ten years is widely believed to be the main cause of the slew of paralyzing breakdowns. Ever rising train fares have enabled the company to report tens of millions of profits every year. The PAP government has created a 1.1 billion fund using Singaporeans’ tax money to help SMRT and SBS pay for 550 new buses. It is now apparent that profits are privatized and losses are nationalized.
PAP MP Lim Biow Chuan has suggested that SMRT apply for welfare from the government to helping them cope with the loss of income from the breakdowns:
“All these maintenance regimes, the cost should be borne by SMRT. It shouldn’t have any impact on train fares for commuters to have to pay more fares. In the event that all these additional maintenance works cost too much, SMRT may want to put up a request to the government to see if they can receive any kind of government assistance. And if that were to happen, then the government should study carefully to make sure that SMRT is justified in making any such requests,”~PAP MP Lim Biow Chuan
Singapore’s public services have largely been privatized with the major shareholder being Temasek Holdings, a sovereign wealth fund company whose CEO is PM Lee’s wife, Ho Ching.
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