KUALA LUMPUR (June 16): The Public Accounts Committee (PAC) revealed "conflict of interest" in Express Rail Link Sdn Bhd's (ERL) rail line extension contract award to a company linked to its major shareholder via direct negotiations.

ERL awarded the project involving rail line extension from Kuala Lumpur International Airport (KLIA) to KLIA2 to Syarikat Pembinaan YTL Sdn Bhd and Seri Yakin Sdn Bhd.

ERL is a joint venture between YTL Corp Bhd (fundamental: 1.2; valuation: 1.4), Lembaga Tabung Haji and Trisilco Equity Sdn Bhd. YTL holds 50% in ERL, while Lembaga Tabung Haji and Trisilco own 40% and 10% respectively.

The PAC said in a report tabled in Parliament today, that "there is a conflict of interest in the award of the tender, which was done via direct negotiation with the contractor, since the shareholder of the main contractor and the main shareholder of ERL are from the same parties."

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