Keretapi Tanah Melayu Bhd (KTMB) has initiated an internal probe into a multi-million ringgit procurement deal, said its chairman Nawawi Ahmad.
The Star quoted Nawawi saying that that KTMB President Sarbini Tijan, who is being investigated, has been told to go on leave pending the outcome of an inquiry.
Sarbini however, when contacted by the daily, denied any wrongdoing and claimed he was being unfairly targeted.
General manager for procurement Mohd Hider Yusoff has been put in charge, in Sarbini's absence.
The probe was initiated after it was found a multi-million ringgit procurement was done without KTMB's board of director's approval.
The rail operator was also back in 2011, probed by the Malaysian Anti-Corruption Commission (MACC) regarding irregularities in the awarding of the tender to the revamp of its ticketing system. The tender was reportedly awarded to a company far less experienced than two other competitors, at a higher price.
There is also void in terms of leadership in the company, with three out of senior vice-president positions being left vacant for more than a year.
KTMB announced a three-year turnaround plan in 2012, after it recorded a total net loss of RM238.5 million. The following year, the loss was narrowed down to RM128.2 million.
According to Nawawi, who is also Langkawi MP, KTMB was on track to achieve the objectives of the turnaround plan and is expected to break even this year and register profits from next year.
He had reportedly said last week that KTMB suffered an annual loss of RM50 million due to cheap ticket fares set by the Land Public Transport Commission (SPAD).-Mkini