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‘Old system’ of penalties and fines led to adversarial relationship between regulator and operator: Khaw

SINGAPORE — While the Land Transport Authority (LTA) will decide on penalties for train operator SMRT, Transport Minister Khaw Boon Wan said he prefers to avoid the “old system of penalties and fines” provided by the existing licensing framework.

While the Land Transport Authority (LTA) will decide on penalties for train operator SMRT, Transport Minister Khaw Boon Wan said he prefers to avoid the “old system of penalties and fines” provided by the existing licensing framework. Photo: Koh Mui Fong/TODAY

While the Land Transport Authority (LTA) will decide on penalties for train operator SMRT, Transport Minister Khaw Boon Wan said he prefers to avoid the “old system of penalties and fines” provided by the existing licensing framework. Photo: Koh Mui Fong/TODAY

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SINGAPORE — While the Land Transport Authority (LTA) will decide on penalties for train operator SMRT, Transport Minister Khaw Boon Wan said he prefers to avoid the “old system of penalties and fines” provided by the existing licensing framework.

“If you ask me, my preference is not to go back to this old system of penalties and fines because it created a very adversarial relationship between the regulator and the operator,” said Mr Khaw at a joint media briefing with SMRT on Monday (Oct 16).

The acrimonious relationship between both parties was a stumbling block to achieving excellence, he said. Mr Khaw took on the transport portfolio in Oct 2015, a month after SMRT was fined S$5.4 million for the Republic’s worst train disruption that affected 413,000 commuters in July 2015. In July 2012, SMRT was fined S$2 million for two disruptions in December 2011 that affected 221,000 commuters.

Under the Rapid Transit Systems Act, operators can be fined up to S$1 million or 10 per cent of their annual fare revenue for the affected line, whichever is higher.

“Two years ago, the immediate reaction was — who’s to blame?... In such a relationship, it’s always, ‘I’m not responsible, it’s not me, it’s a design problem.’ Then (the) design (team) says, ‘No, this is (a) maintenance problem.’ And everything just ding-dongs,” said Mr Khaw.

In the past two years, he has worked to bring regulator and operator together as a team to address major and minor problems together, he said.

The aviation industry pioneered such a working relationship, forming joint committees to investigate aviation incidents, he added.

The LTA will mull over the facts of the case and the mitigating factors to mete out penalties for the flooding incident between Bishan and Braddell MRT station on Oct 7.

“For this particular issue, that’s for the LTA board to decide,” said Mr Khaw.

Days after the flooding incident last week, it was reported that SMRT replaced a senior staff member in the maintenance team. Mr Ng Tek Poo, the vice-president for maintenance, was replaced by Mr Siu Yow Wee, the director of station operations, with immediate effect.

At the media briefing, SMRT chairman Seah Moon Ming said he made the decision to remove the team leader immediately, without naming anyone. Team members and their superiors will also see their bonuses being cut.

“Because he is the head of this particular function, we removed him from his responsibilities there. It allows us to investigate the entire workflow and processes and culture in that sub-unit in a more open and transparent way... but (he) may not end up as (the only) person,” said SMRT group chief executive Desmond Kuek.

Internal investigations continue but SMRT has pinpointed several weak areas: The level of accountability by supervisors, the level of ownership over “what is not working well”, and the openness in reporting issues on the ground. These are areas in which the operator will be improving, pledged Mr Kuek.

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