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10-07-2016, 10:50 AM
An honorable member of the Coffee Shop Has Just Posted the Following:
You heard it here first. The powers that be have finally realised the inevitable. LTA has become too big a monster and has overwhelmed and consumed MOT. I guess the Contract 151A finally broke the camel's back. One caveat though, after 50 years of PAP rule, we all know an admission of a mistake is never on the cards. The name and facade will remain for some time but it will re-structured with a low profile publicly but highly intense in MOT and LTA.
Here are the main reasons
1. It began life pretty much as a regulator and a planner for future state. The regulator role has pretty much has been compromised. Error was made when it took roles such as procurement and maintenance (to some extent) which is directly in conflict with its regulators role.
2. It has become caught in the political vortex with Temasek and in particular SMRT. In July 2012, the Commission of Inquiry looking into the 2 systemic breakdown in SMRT services in 2011, had in its report amongst other things mentioned that LTA and SMRT agreed to form joint teams to conduct inspections to address and avoid future issues. (The COI report is pretty damning and shows how poorly SMRT performed it role). The regulator and PTO(public transport operator) forming joint teamss??? This is in breach of basic risk management principle where clear separation of roles must exist. Which political power suggested the joint teams. And this joint nonsense is still on. By now most people have realised that SMRT has become deaf to criticism and it has everything reason to do so. It is one of the best performing public listed company financially even during Saw's time and now with Kuek. There is no incentive and any financial penalties imposed are easily absorbed by the profits. So is the construct sound despite numerous mishaps.
3. MRTA (Mass Rapid Transit Authority 1980) and later MRTC, (Mass Rapid Transit Corporation 1983) did a sterling job in planning, building and operating Singapore's MRT. The planners and decision makers than realised that it needed a separate authority and not burden LTA. For 13 years Singaporeans had wonderful service from MRTC until SMRT was created in 2000. Even when there was a disruption, the cause was immediately identified and apologies were sincere.
4. LTA issues are not confined to trains. The inability of public listed companies who are GLCs trying to make profits while meeting their customer's demand was already an issue with the bus services. It was no surprise that Ministry of Finance under Tharman lost their patience and introduced the new bus tendering system. It was not only to drive competition but to remove politics from open market practice. I think we are seeing results with Tower Transit who suddenly seemed to have found Singaporeans who are keen to drive buses and SBS announcing the highest pay hike in its history. So where were the profits going if the companies were not re-investing in its business.
Now for the execution. MOT's perm sec is Pang Kin Keong who is well regarded and very familiar with politics and business and has the jump seat. In addition, former Director General of CAAS Yap Ong Heng who in his 6 years with that stat board (CAAS) successfully restructured CAAS and corporatised Changi Airport retired last year. He has however been recalled back and all bets are that he will be involved in the restructuring.
Lastly don't hope for the Brothel Press from Toa Payoh to report important things such as this, Sumiko' relationship with her husband is more important for the public in their view. Nothing will appear. When Warren Fernandez retires like Cheong and Han, he is expected to write in his memoirs how he fought the authorities on reporting important issues but they did their best notwithstanding.
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?232666-From-the-inside-LTA-to-be-restructured&goto=newpost).
You heard it here first. The powers that be have finally realised the inevitable. LTA has become too big a monster and has overwhelmed and consumed MOT. I guess the Contract 151A finally broke the camel's back. One caveat though, after 50 years of PAP rule, we all know an admission of a mistake is never on the cards. The name and facade will remain for some time but it will re-structured with a low profile publicly but highly intense in MOT and LTA.
Here are the main reasons
1. It began life pretty much as a regulator and a planner for future state. The regulator role has pretty much has been compromised. Error was made when it took roles such as procurement and maintenance (to some extent) which is directly in conflict with its regulators role.
2. It has become caught in the political vortex with Temasek and in particular SMRT. In July 2012, the Commission of Inquiry looking into the 2 systemic breakdown in SMRT services in 2011, had in its report amongst other things mentioned that LTA and SMRT agreed to form joint teams to conduct inspections to address and avoid future issues. (The COI report is pretty damning and shows how poorly SMRT performed it role). The regulator and PTO(public transport operator) forming joint teamss??? This is in breach of basic risk management principle where clear separation of roles must exist. Which political power suggested the joint teams. And this joint nonsense is still on. By now most people have realised that SMRT has become deaf to criticism and it has everything reason to do so. It is one of the best performing public listed company financially even during Saw's time and now with Kuek. There is no incentive and any financial penalties imposed are easily absorbed by the profits. So is the construct sound despite numerous mishaps.
3. MRTA (Mass Rapid Transit Authority 1980) and later MRTC, (Mass Rapid Transit Corporation 1983) did a sterling job in planning, building and operating Singapore's MRT. The planners and decision makers than realised that it needed a separate authority and not burden LTA. For 13 years Singaporeans had wonderful service from MRTC until SMRT was created in 2000. Even when there was a disruption, the cause was immediately identified and apologies were sincere.
4. LTA issues are not confined to trains. The inability of public listed companies who are GLCs trying to make profits while meeting their customer's demand was already an issue with the bus services. It was no surprise that Ministry of Finance under Tharman lost their patience and introduced the new bus tendering system. It was not only to drive competition but to remove politics from open market practice. I think we are seeing results with Tower Transit who suddenly seemed to have found Singaporeans who are keen to drive buses and SBS announcing the highest pay hike in its history. So where were the profits going if the companies were not re-investing in its business.
Now for the execution. MOT's perm sec is Pang Kin Keong who is well regarded and very familiar with politics and business and has the jump seat. In addition, former Director General of CAAS Yap Ong Heng who in his 6 years with that stat board (CAAS) successfully restructured CAAS and corporatised Changi Airport retired last year. He has however been recalled back and all bets are that he will be involved in the restructuring.
Lastly don't hope for the Brothel Press from Toa Payoh to report important things such as this, Sumiko' relationship with her husband is more important for the public in their view. Nothing will appear. When Warren Fernandez retires like Cheong and Han, he is expected to write in his memoirs how he fought the authorities on reporting important issues but they did their best notwithstanding.
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?232666-From-the-inside-LTA-to-be-restructured&goto=newpost).