Yangon Region Government’s two YBS companies— Yangon Urban Public Transportation Public Company (YUPT) and the Yangon Bus Public Company (YBPC)—made a total loss of over Ks 3,800 million, according to the report of Yangon Region Auditor-General.
Yangon Region Auditor-General Daw Khin Than Hla, submitted the audit report at the session of Yangon Region Parliament on January 8.
The total capital investment by the YBPC, is Ks 8,978.118 million, expenditure, Ks 6,483.229 million, depreciation, Ks 5,499.374 million and the net loss, Ks 3,004.485 million.
The total capital investment by the YUPT, is Ks 14,949.230 million, expenditure, Ks 11,854.096 million, depreciation, Ks 3948.556 million and the net loss, Ks 853.433 million.
Auditor-General Daw Khin Than Hla said: “The reason why expenditures are higher than income is both companies made the net losses due to the depreciation costs though they had profits before deducting the depreciation costs. There occurred losses as the depreciation rate was calculated on a 20-per-cent income tax levied on the value of vehicles according to the Notification-19/2016 of the Ministry of Planning and Finance.
According to the balance sheet, the value of land by the YBPC increased by Ks 1,770.4 million as the 20-acre government-owned land located on Minyekyawsaw Road in East Dagon Myothit Township was contributed by the regional government as a share. The value of vehicles increased by Ks 35,479.499 million as the region government bought 500 vehicles from China with the contribution of Ks 35 billion by the regional government and a loan of Ks four billion from the AYA bank. The companies used Ks 1109.300 million for the construction of bus rest camp and Ks 325 million for the construction of building at the bus rest camp and Ks 70 million for the car park, the auditor-general added.
“The increase in capital investments is due to the contribution of Ks 35 billion by the regional government in the 2016-2017 fiscal year. The increase in long-term and short-term loans is that the regional government has to take a loan of Ks four billion from the AYA Bank, at an annual interest rate of 13 per cent to purchase 500 passenger buses from China for the better bus services system. Till 31, January 2019, the region government repaid Ks 2848.237 million to the bank,” she said.
The auditor-general pointed out that the value of vehicles owned by the YUPT company increased by Ks37,088.388 million as the region government bought 500 vehicles from China with the contribution of Ks 35 billion by the regional government and Ks four billion in loan from the AYA Bank. The value of machines and equipment increased by Ks 62.243 million as the company purchased office equipment like photocopier, fan and generator. The construction expenditures increased by Ks214.209 million as the company renovated the buildings.
“The YUPT and the YBPC get social benefits from the investments. But officials should supervise the regular maintenance of vehicles, better disciplines for bus lines owned all bus companies, convenience of commuters, extension of bus routes, getting suitable profits from capital investments and the collection of bus fares based on mileage,” she suggested.
