DAP threatens to sic PAC, Auditor-General on KLIA2

By Shazwan Mustafa Kamal, The Malaysian Insider

KUALA LUMPUR, Nov 23 — DAP today demanded full disclosure of the new low-cost terminal’s construction cost from the Transport Ministry, following a report that the project may have exceeded its budget.

The party’s national publicity secretary, Tony Pua, warned he would request probes by both the Public Accounts Committee (PAC) and the Auditor-General’s office if Transport Minister Datuk Seri Kong Cho Ha does not respond.

“He must provide full clarification and justification as to why he has failed to manage and control the cost of the new airport, and why it has been delayed to April 2012, as announced by Malaysia Airports Berhad (MAB) managing director, Tan Sri Bashir Ahmad,” Pua told reporters here today.

The Edge Financial Daily reported yesterday that the cost of the new low cost carrier terminal, dubbed KLIA2, is speculated to have increased significantly over its original estimate of RM2 to 2.5 billion.

The report also quoted MAHB officials as saying that additional cost would not immediately mean higher airport fees as these were regulated by the Transport Ministry and MAHB could recoup the costs from non-aeronautical revenues such as airport retail.

The official also said the airport charges are not based on the cost of building the airport and that the return on investment (ROI) for KLIA2 is based solely on non-aeronautical income.

However, Pua today dismissed the MAHB official’s reported remarks, saying that such an increase in cost would be injurious to the airport’s eventual users.

“The higher cost will either be translated into higher airport taxes and charges, hurting both domestic consumers and international passengers, and ultimately our tourism industry,” said the Petaling Jaya Utara MP.