KUALA LUMPUR (Sept 4): PKR has called on the government to halt plans to let business tycoon Tan Sri Syed Mokhtar Al-Bukhary’s Malaysian Mining Corporation (MMC Corp) take control of Keretapi Tanah Melayu Bhd (KTMB).

The party’s strategy director Rafizi Ramli questioned the move by the government to offload the loss-making railway operator, pointing out that the previous privatisation attempt in 1997 by Merak Unggul Sdn Bhd ended in failure, resulting in the government taking back KTMB after six years.

He also questioned why the government did not call for an open tender for the loss-making but asset- rich KTMB.

“What conditions will the government put in place to ensure that KTMB’s RM50 billion worth of assets and property does not fall into private or personal coffers?” he said in a statement released on Tuesday.

MMC Corp’s proposal to the government to take over KTMB was reported by Malay-language newspaper Utusan Malaysia on Aug 24, with The Edge and the Business Times reporting that the company plans to pump in RM1 billion to take control of the railway operations.

Rafizi also expressed fears that if the takeover were to succeed, it would give Syed Mokhtar a “monopoly” over the railway network, and this could impact future plans by the government to upgrade the rail system.

He added that the government would be able to benefit from the privatisation plans if it were to tender out the exercise provided the acquisition only involves increasing operational and cost efficiency, without taking over KTMB’s RM1 billion in debts.

Besides the assets, Rafizi also asked the government what measures were in place to ensure the welfare of KTMB’s 5,500 workers in the event MMC Corp takes the railway company private.

KTMB Worker Unions had earlier threatened to demonstrate against the privatisation move in October, fearing that it may result in loss of employment.

In the statement, PKR also urged Prime Minister Datuk Seri Najib Razak to clear the air on the financial assistance given to MMC Corp to carry out its plans, claiming that it was possible that the takeover would be supported by government-backed bonds.

Umno-linked businessman Syed Mokhtar also owns the Senai airport and major ports in the country, including the Port of Tanjung Pelepas (PTP) and Pasir Gudang port. He also has interests in power generation, plantations, logistics, engineering and property development, among others.