How did the MMMSL project lead to RM500 million in audited losses for Prasarana?

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Audited Losses of RM500 Million Linked to Prasarana's Saudi Metro Project

Prasarana Malaysia Bhd is set to report findings from an extensive internal audit and forensic investigation to the Malaysian Anti-Corruption Commission (MACC) and the Companies Commission of Malaysia (SSM) concerning the Al Mashaaer Al Mugaddassah Makkah Metro Southern Line (MMMSL) project. This investigation revealed that the project resulted in audited losses of 417 million Saudi riyals, equivalent to RM500 million, for the financial year 2019. The comprehensive review, which spanned 18 months and included input from PriceWaterhouseCoopers Advisory Services, examined various facets of the project's lifecycle, from its initial tender processes to ongoing operational and maintenance aspects.
Investigation Scope Covered Tender Processes and Contractual Execution

The internal audit and forensic investigation meticulously reviewed the pre- and post-tender award processes for the MMMSL project. This encompassed an examination of how the contracts were secured and managed, alongside a thorough assessment of Prasarana's execution of its contractual obligations. Furthermore, the investigation delved into the maintenance, repair, and overhaul (MRO) issues specifically pertaining to spare parts utilized within the project.
Involvement of Past Officials and Entities Under Review

The probe also scrutinised the roles and involvement of then-officers and board members from Prasarana itself, as well as its subsidiaries Rapid Rail Sdn Bhd and Prasarana Integrated Management and Engineering Services Sdn Bhd (PRIME). This review aimed to understand the decision-making and operational oversight during the project's tenure. Prasarana has stated that these actions are consistent with its commitment to upholding principles of good governance, transparency, and accountability.
Challenges Faced During the Investigation

Conducting the investigation presented significant challenges. Many key officers who were integral to the MMMSL project had since departed from Prasarana, PRIME, or Rapid Rail. The project's geographically extensive nature also necessitated cooperation and assistance from overseas subcontractors and consultants, and required investigators to meticulously sift through a substantial volume of documents that had been transferred from Saudi Arabia to Malaysia. Prasarana has pledged its full support and cooperation with the authorities throughout their subsequent investigations and any ensuing legal actions.

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How did the MMMSL project lead to RM500 million in audited losses for Prasarana?

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