Money will be donated to the Public Transport Fund to help needy families with transport fares
The Land Transport Authority (LTA) will impose the maximum financial penalty of S$2 million on SMRT for the two disruptions to train services along the North-South Line (NSL) on 15 and 17 December 2011.
2. LTA's investigations have found that SMRT had failed to meet its licensing obligations for the North-South and East-West Lines (NSEWL). It has failed, among other things, to exercise due diligence and vigilance expected of a public transport operator, and to maintain its network in good and efficient working condition. In both incidents, SMRT was also found to be in breach of the Operating Performance Standards (OPS) for the NSEWL.
3. LTA's internal investigation on the causes of the incidents is consistent with the findings of that of the Committee of Inquiry's (COI), in particular that the incidents were preventable. LTA has also assessed that there were overall shortcomings in SMRT's maintenance and monitoring regime.
4. Under Section 19 of the Rapid Transit Systems (RTS) Act, a licensed public transport operator can be fined up to $1 million per incident, if the operator fails to comply with the Operating Performance Standards and other regulatory requirements. In assessing the penalty amount, LTA considers the facts of the case, severity of the incident and any relevant mitigating factors that may apply. It will also consider any representations which the operator may make.
More Holistic and Robust Framework for Maintenance
5. Following the December 2011 incidents, the LTA-SMRT Joint Team was set up to look into reducing disruptions and increasing the reliability of the North South East West Line. SMRT has also started a comprehensive programme to improve its service reliability and incident response capabilities. A number of improvements have been completed while others are in the midst of implementation.
6. LTA will continue to work closely with SMRT to follow through with the COI's recommendations. It will also work with RTS operators to move towards a more holistic and robust framework for maintenance issues, so that problems can be detected early and there can be timely preventive action.
Donation of Fine to the Public Transport Fund
7. The $2 million will be donated to the Public Transport Fund to help needy families with transport fares.