MPSJ assets depreciate by RM13mil in a year

The total net book value of Subang Jaya Municipal Council’s assets, including properties, buildings, vehicles, machines and furniture have depreciated from RM155 million in 2009 to RM142 million in 2010, councillors were told at the MPSJ monthly full board meeting yesterday.

MPSJ Treasurer, Fadzil Mahat revealed the total asset depreciation amounted to approximately RM13 million.

MPSJ buildings recorded the highest depreciation which saw values of RM142 million in December 2009 drop to RM131 million the following year.

MPSJ Councillor, Arumugam Kalimuthu called for an explanation on the matter, and also questioned whether MPSJ has been purchasing properties at prices higher than market value.

“Is it because we always purchase buildings at a high price, that’s why they depreciate tremendously over the years?”

Fadzil responded by saying that providing for depreciation is normal accounting practice.

Komunitikini later learned that MPSJ’s properties include the council building, MPSJ Sport Complex, the 3K Complex in Subang Jaya and Serdang.

These pieces of property are located at prime locations and yet have failed to appreciate in value, and have even depreciated instead.

Acting council president Abdullah Marjunaid later admitted that the book value of the buildings might not reflect their actual market worth.

“I have suggested in the meeting that we should hire property surveyors to value the buildings, but then again, it will incur extra costs,” he said.

Arumugam (left) also urged the council to undertake independent valuation before any property is purchased.

Besides buildings, MPSJ’s land holdings also depreciated from RM670,000 to RM665,000 by December 2010.

LRT extension: conditional approval given

On another note, councillor Rajiv Rishyakaran questioned whether the One Stop Centre (OSC) committee has approved the LRT Extension Plan by Syarikat Prasarana Bhd.

“Does it mean we have sorted out the outstanding issues at Saujana Residency and Kampung Sri Aman stations?” he asked.

The Town Planning Department Director Yunos Kashid said MPSJ has only issued conditional approval for the LRT alignment.

He said Prasarana has to first comply with conditions imposed by members of a technical committee before giving final approval.

“The members are made up of representatives from  Public Works Department, Drain and Irrigation Department, TNB and the Malaysian Highway Authority. They will examine Prasarana’s application according to OSC standard,” he explained.

Yunos said Prasarana is considering building a station in Kampung Kuala Sungai Baru, which is a village located opposite of Kampung Sri Aman.

“Rather than just having an alignment, MB (the chief minister) thinks Prasarana might as well build a station for future use,” he said.

“But they are thinking whether to build it now or later,” he added.

On Saujana Residency, Yunos confirmed Komunitikini’s earlier report that an approval has been given to the station.

He asked Prasarana to resolve all outstanding issues before the council gives the green light to start work.