Wednesday, November 08, 2017

Audit of SMRT operating asset

In his statement, the transport minister said:

Payment to SMRT is contingent on the requirement that the condition of the operating assets should befit their age. This process takes several years to complete. You can appreciate the extent of the assets that we are taking over. This is not a simple operation and we are not even halfway there.

Do we really need a detailed audit to determine the payment to SMRT?

SMRT is now wholly owned by Temasek Holdings and TH is wholly owned by the government. I suggest that a simple depreciation formula can be applied to the assets.

The formula can be negotiated at a high level. After all, it is from the right pocket to the left pocket, right?

We should not be spending time on unnecessary activities, right?

Perhaps, this has some impact on the performance bonus of senior people. It is this culture of "performance bonus" that is quite bad. We should review this practice.

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