Public Accounts Committee recommends KKR, LLM conduct detailed cost-benefit analysis of MLFF project

Public Accounts Committee recommends KKR, LLM conduct detailed cost-benefit analysis of MLFF project

The Public Accounts Committee has recommended that the works ministry (KKR) and the Malaysian Highway Authority (LLM) conduct a more detailed cost-benefit analysis on the multi-lane free flow (MLFF) toll collection project, Bernama has reported.

This recommendation was made after the committee concluded that the implementation of MLFF would not fully resolve traffic congestion on highways, said PAC chairman Datuk Mas Ermieyati Samsudin, and this was one of six recommendations made by the PAC in Dewan Rakyat regarding the management of the MLFF project under KKR and LLM, according to the report.

Mas Ermieyati added that KKR needs to finalise the direction of the MLFF system promptly after the appointment agreement had expired on December 16 last year.

“KKR needs to seek detailed advice or reviews from the ministry of finance or the public-private partership unit (KKAS) to confirm the best procurement method for implementing MLFF. The implementation of MLFF should be carried out using the best method, with no cost implications to the government or users,” she was quoted as saying in a statement.

Public Accounts Committee recommends KKR, LLM conduct detailed cost-benefit analysis of MLFF project

The Public Accounts Committee also stated its view that it would be inappropriate for the government to sign any agreements with significant impact during a caretaker government period, Mas Ermieyati added. “As an immediate measure, LLM and the concessionaire companies need to enhance the effectiveness and efficiency of toll collection at each toll plaza,” she said.

Following the government’s announcement in March 2023 that RM3.46 billion would be allocated for the MLFF, and the PAC had held six proceedings on the matter from February 26, 2024 to November 19, 2024.

The committee called witnesses including the works ministry’s secretary general, the former secretary-general from December 2021 to September 2023, its deputy secretary-general for policy and development, the public-private partnership unit (UKAS) director-general, LLM director-general, the president of the Malaysian Highway Concession Companies Association and the Selangor Network Consortium project director, reported Bernama.

As a result of the proceedings, 11 conclusions were made by the public accounts committee. The PAC report on the MLFF implementation management under KKR and LLM can be downloaded for reading on the PAC website.

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