Will The MAHB Board Of Directors & Management Team Please Stand Up ?

Regular users of KLIA will have heard it all before. When something breaks down, and not for the first time, top management will come out with umpteen excuses, to explain away yet another failure.

MAHB only offered to overhaul the trains, but not replace them despite their age and frequent breakdowns.

Did the managing director not sense the urgency of replacing the trains? Was he not at all concerned that it would probably have cost more for their upkeep besides ruining the reputation of KLIA and MAHB? Has he heard of the term ‘false economy’? What happened to his team of engineers and estimators to calculate costs and make the necessary risk assessments?

At what point in the life cycle of the trains should they have been replaced?

The current managing director seems to think that the trains should go. But why did previous managing directors fail to realise that the frequent breakdowns were an indication of something seriously wrong?

What caused the breakdowns, then? A lack of a proper and regular maintenance culture? Lack of spare parts? Lack of training? Or corruption which has reduced the money meant for maintenance? Or corruption forcing the maintenance crew to take short cuts because of a lack of funds?

Who decision within the board of directors and management team to award Prestech Aerostrain Contract For RM 743 Millions ?

PESTECH Bags Aerotrain Contract From MAHB For RM743mil

Why did MAHB award the rehabilitation works of the existing just 1.2 km line for RM 743 Millions ?

Malaysia Airports Holdings Bhd (MAHB) has awarded a RM742.95m contract to Pestech International Bhd for the construction and delivery of a new automated people mover (APM) at Kuala Lumpur International Airport (KLIA).

The new APM project that has been awarded to Pestech Technology Sdn Bhd (Pestech), a wholly-owned subsidiary of public listed Pestech International Berhad, will start works in March 2022 and take three years to complete. The project encompasses the replacement of the Aerotrain system as well as its maintenance for ten years until 2034. Pestech will be working with a reputable OEM – Bombardier Transportation – recently acquired by Alstom, a French multinational rolling stock manufacturer operating worldwide in rail transport markets and active in the fields of passenger transportation, signaling and locomotives.

To implement the project, Pestech will be working with a Bombardier Transportation (now Alstom).

KLIA Aerotrain Breakdowns Have Tarnished Malaysia’s Image

Earlier this year , Malaysia Airports Holdings Bhd (MAHB) had to suspend its aerotrain services at KLIA after a breakdown that involved 114 passengers, forcing passengers to walk 400m on the train tracks.

The problems plaguing the Aerotrains at the Kuala Lumpur International Airport (KLIA) have tarnished the nation and the airport’s image, admitted Anthony Loke.

The transport minister said the authorities were working to improve the quality of service of the streamlined train set, but added that the aerotrains were already at the end of their lifespan.

“The aerotrains have been facing problems for quite some time as they have reached the end of their lifespan of 25 years.

“We are rectifying the problems now, but even if they are repaired, the aerotrain services are still unstable.

Why Did MAHB Award A Train Contract To Companies & Directors That Is Being Investigated By MACC ?

Previously MACC confirms running investigations into MRT and LRT projects. MACC senior director for investigations Datuk Seri Hishamuddin Hashim said the arrest of three directors and two former directors of engineering companies related to the MRT project in March 2021 has resulted in new developments in the investigation.

The MACC disclosed the arrests of five current and former directors of an engineering firm for an investigation into alleged corruption in a RM650 million MRT project. Pestech International Bhd pledged full cooperation with the MACC probe.

MACC was also investigating RM30 billion worth of LRT and MRT projects from 2011 until now which were allegedly rolled out by a local firm linked to a French conglomerate which has a record of falsifying safety and quality tests.

Authorities in France are investigating serious allegations of fraud and bribery linked to the Klang Valley Mass Rapid Transport (KVMRT) project.  The scandal revolves around the MRT2 project, worth some RM692 million, with the focus on a company in Malaysia linked to its French conglomerate which has earned a reputation for fraudulent practices through the misrepresentation of safety and quality tests.

Pestech Confirms 2 Top Execs Charged For Abetting In Misappropriation Of A Subsidiary’s Funds

Pestech International Bhd has confirmed that two of its top executives have been charged for allegedly abetting the misappropriation of RM10.6 million related to its wholly-owned subsidiary, PESTECH Technology Sdn Bhd.

Pestech said both executive chairman Lim Ah Hock and managing director-cum-group chief executive officer (CEO) Lim Pay Chuan were charged at Shah Alam Sessions Court last Friday (Jan 27).

The charges were framed under Section 109, read together with Section 403 of the Penal Code, which states that those found guilty of misappropriation could be jailed for up to five years, whipped, and/or fined.

Source : The Edge

Pakatan , Nurul Izzah & Tony Pua Wants MACC To Probe All Alstom Deals

The Malaysian Anti-Corruption Commission (MACC) must investigate all government deals with French engineering group Alstom, which was fined RM133 million by Swiss authorities for allegedly bribing civil servants in several countries including Malaysia, Pakatan Rakyat (PR) has demanded.

It is the second French company in as many years to be fined for bribing government officials, after telco firm Alcatel-Lucent paid RM435 million to resolve US criminal and civil probes in December 2010.

Nurul Izzah said the MACC should also investigate Alstom’s past deals with the government.

Alstom was awarded a RM2.8 billion contract by Tenaga Nasional earlier this year to provide key power generation equipment to Southeast Asia’s first 1,000-megawatt (MW) supercritical coal-fired power plant in Manjung.

Nurul Izzah Anwar told The Malaysian Insider the MACC should immediately investigate Alstom’s latest contract, as well as past deals with the government.

“It must be immediately investigated by the MACC as well as scrutinised by the Public Accounts Committee.

Tony Pua said it was embarrassing that major cases of alleged corruption on large projects are not investigated within Malaysia but are exposed in other countries.

This, according to Pua, was one of the underlying reasons why the perception of corruption in Malaysia continued to be poor as reflected in the Transparency International Corruption Perception Index (CPI).

Source : Lib Perdana

Alstom Signed The Upgrading Contract For The KLIA Aerotrain

With a presence of over 20 years in Malaysia, Alstom has successfully participated in some of the most iconic mobility projects in the country, including the Kuala Lumpur Sri Petaling and Ampang Lines, the Kuala Lumpur International Airport (KLIA), and Kelana Jaya LRT Line. In 2022, Alstom also signed the upgrading contract for the KLIA Aerotrain.

Alstom One Of The Companies MAHB Looks To Repair Aerotrain

MALAYSIA Airports Holdings Bhd (MAHB) has reached out to as many as eight companies, seeking a request for proposal (RFP) for the companies to undertake repairs to the aerotrain currently connecting KL International Airport’s (KLIA) Main Terminal Building and the Satellite Building, sources say.

In an email response to The Edge, MAHB says, “We have, thus far, invited eight companies, both local and international, to give us a proposal for the rectification and maintenance of the existing aerotrain so that it can sustain operations with high serviceability while waiting for the new aerotrain replacement project to complete. In the meantime, to ensure passenger convenience, we have embarked on providing additional shuttle bus service plying between the Satellite Terminal and Main Terminal. We have, thus far, brought in an 12 additional buses, from the existing 18 buses.”

According to sources, MAHB is said to have approached China’s CRRC Corp Ltd; Germany’s Siemens AG; South Korea’s Hyundai Rotem; Thailand’s BTS; Japan’s Mitsubishi Heavy Industries; Bombardier, which is a unit of France’s Alstom; and two local companies, SMH Rail Sdn Bhd and Hartasuma Sdn Bhd.

Source : The Edge

Alstom Pleads Guilty and Agrees to Pay $772 Million Criminal Penalty to Resolve Foreign Bribery Charges

Largest-ever foreign bribery resolution with the Department of Justice

Alstom S.A. (Alstom), a French power and transportation company, pleaded guilty today and agreed to pay a $772,290,000 fine to resolve charges related to a widespread scheme involving tens of millions of dollars in bribes in countries around the world, including Indonesia, Saudi Arabia, Egypt and the Bahamas.

Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Michael J. Gustafson of the District of Connecticut and FBI Executive Assistant Director Robert Anderson Jr. made the announcement.

“Today’s historic resolution is an important reminder that our moral and legal mandate to stamp out corruption does not stop at any border, whether city, state or national,” said First Assistant U.S. Attorney Gustafson. “A significant part of this illicit work was unfortunately carried out from Alstom Power’s offices in Windsor, Connecticut. I am hopeful that this resolution, and in particular the deferred prosecution agreement with Alstom Power, will provide the company an opportunity to reshape its culture and restore its place as a respected corporate citizen.”

“This investigation spanned years and crossed continents, as agents from the FBI Washington and New Haven field offices conducted interviews and collected evidence in every corner of the globe,” said FBI Executive Assistant Director Anderson. “The record dollar amount of the fine is a clear deterrent to companies who would engage in foreign bribery, but an even better deterrent is that we are sending executives who commit these crimes to prison.”

Alstom admitted its criminal conduct and agreed to pay a criminal penalty of $772,290,000. U.S. District Judge Janet B. Arterton of the District of Connecticut scheduled a sentencing hearing for June 23, 2015 at 3pm.

According to the companies’ admissions, Alstom, Alstom Prom, Alstom Power and Alstom Grid, through various executives and employees, paid bribes to government officials and falsified books and records in connection with power, grid and transportation projects for state-owned entities around the world, including in Indonesia, Egypt, Saudi Arabia, the Bahamas and Taiwan. In Indonesia, for example, Alstom, Alstom Prom, and Alstom Power paid bribes to government officials – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara, the state-owned electricity company in Indonesia – in exchange for assistance in securing several contracts to provide power-related services valued at approximately $375 million. In total, Alstom paid more than $75 million to secure $4 billion in projects around the world, with a profit to the company of approximately $300 million.

Source : DOJ

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