Poor governance at SMRT should worry Singaporeans.
After throwing billions in tax dollars at SMRT – prior to privatization – the company has become more opaque and no longer discloses material information in its annual report.
In fact, SMRT has engaged in selective reporting to paint a picture of rising maintenance expenditure, necessitating increased fares.
Point to note is SMRT has other sources of income (table below) which earned on average 15 times of rail profits. But these are no longer reported. (SMRT report)
The PAP government should not allow SMRT to conceal information pertaining to the performance of its non-rail businesses.
Under PAP’s compensation system, good performance is usually rewarded with outsized bonuses. However, any idiot would be able to perform well in SMRT’s retail and advertising businesses because of its super prime locations.
SMRT should disclose all remuneration paid to senior management and board of directors, especially CEO Kuek and Chairman Seah. Concealing such information only leads to suspicion of cronyism at commuters’ expense.