PRASARANA Malaysia Bhd had removed Muhammad Nizam Alias from his president and group CEO (PGCEO) post after three months of garden leave, based on an internal memo to its staff sighted by The Malaysian Reserve (TMR).
The special announcement signed by Prasarana chief human capital officer Tomin Salikan stated that Muhammad Nizam ceased to be the PGCEO effective Feb 23.
The company added that its board of directors has agreed to appoint its COO Datin Norlia Noah as the acting PGCEO immediately.
“The management hopes all staff can give their utmost cooperation and support to Norlia to ensure the company’s business continuity,” the memo dated March 2 stated.
On Jan 5, Prasarana chairman Datuk Seri Tajuddin Abdul Rahman said the company’s board had asked Muhammad Nizam to go on leave due to an insubordination issue.
Tajuddin did not elaborate further as the inquiry between the company and Muhammad Nizam was ongoing and said a newly set up small committee will look into Muhammad Nizam’s case.
The internal memo by the company’s human capital division did not state the reasons behind Muhammad Nizam’s dismissal.
Meanwhile, Prasarana when contacted said the company will not respond to the matter while Muhammad Nizam remained tight-lipped.
Last December, several media had reported that Muhammad Nizam was asked to vacate his post from the urban public transport group due to his reluctance to follow Tajuddin’s instructions as the chairman.
The Edge reported that Tajuddin is exerting his authority by seeking the termination of the contractors of the transport-oriented development at the Dang Wangi light rail transit (LRT) station, namely Latitud 8, a mixed-use commercial development with a gross development value of RM1.2 billion.
In the same month, TMR also reported Prasarana wanted “more say” in awarding the sub-contractor of the ongoing LRT3 project.
Both the LRT3 and Latitude 8 issues were said to be the causes for the “big clash” among Prasarana’s management which had led to Muhammad Nizam’s suspension from his duty.
Following this, sources also said Prasarana had tried to delay progress payment to LRT3 main contractor — MRCB-George Kent Sdn Bhd.
Tajuddin had refuted all of the claims made in the media reports.
He said the progress payment of LRT3 to the contractor has been intact — in line with Prasarana’s cashflow management.
Additionally, Tajuddin also said the termination of Latitud 8 could not be considered a conflict of interest as the project was awarded in 2012.
Muhammad Nizam was Prasarana COO until his appointment as the PGCEO in July last year.
Tajuddin said the promotion of Muhammad Nizam, who previously served as the group’s COO, was also to fill the vacancy due to Datuk Mohamed Hazlan Mohamed Hussain’s resignation in January 2020.
Meanwhile, Norlia has been in Prasarana for 17 years. Prior to group COO, she was Prasarana’s chief technical officer.
In total, Norlia has more than 25 years of experience in the rail industry, including in the execution and strategic planning of the LRT3 project since 2013, according to her LinkedIn account.
By : AFIQ AZIZ – TMR