Appointment and removal of MRT CEO

Mr Gerald Giam Yean Song asked the Minister for Transport (a) whether LTA has to date exercised its power to impose conditions relating to the appointment, re-appointment or removal of MRT operators’ CEO, chairman or any of its directors; and (b) what criteria does the LTA use to decide when to impose such conditions.

I asked this question in Parliament on 9 January 2012.

Mr Gerald Giam Yean Song asked the Minister for Transport (a) whether LTA has to date exercised its power to impose conditions relating to the appointment, re-appointment or removal of MRT operators’ CEO, chairman or any of its directors; and (b) what criteria does the LTA use to decide when to impose such conditions.

Mr Lui Tuck Yew (part of Ministerial Statement):

19. Mr Gerald Giam has asked if LTA has to date exercised its power to impose conditions relating to the appointment, re-appointment or removal of MRT operators’ CEO, chairman or any of its directors, and about the criteria that LTA uses to decide when to impose such conditions. Decisions relating to the changes of these key appointments in the company are initiated by the company or (in the case of the chairman and directors) the shareholders, and cannot be unilaterally imposed by LTA. However, under LTA’s current licences, operators must seek LTA’s approval for the appointment, re-appointment or removal of any director or the Chairman of its Board of Directors. While LTA has veto powers over the appointment of the operators’ Board, these are generally intended to be used as a last resort against clearly unsuitable nominees, and to date, LTA has not found it necessary to exercise this veto power.

20. One of the questions that needs to be answered is whether the regulatory regime is sufficiently robust. Together with the COI’s more holistic findings, the Government will thoroughly review the regulatory and penalty framework and its oversight over the operators’ maintenance regimes to strengthen it where necessary.

(Source: Ministry of Transport website, 9 January 2012)

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