One of Kuching-based oldest public bus companies - Sarawak Transport Company (STC) - is in danger of folding up unless its creditors who have been owed 'millions of ringgits' agree to a new arrangement to let it continue to operate.

STC and a related company have applied successfully to the Kuching High Court effectively restraining its creditors - including a bank, parts, diesel and tyre suppliers as well as the Inland Revenue Board - from taking further legal action to claim monies due to them.

The court also ordered a new arrangement which will enable the creditors to be paid some of the money owed to them rather letting the company to be wound up.

Notice of the court order under Section 176 of the Companies Act was published in local newspapers today.

According to a STC spokesman, the company will put forward its proposal to the creditors at a meeting on Feb 3 for some form of settlement that will allow the company to continue to operate and possibly allow the company to make payments of sums owed over a period of time.

"We have a plan (to improve public bus services), which will be presented to the creditors," he told malaysiakini,

Politically-linked company

STC, a company consisting of many individual shareholders, was founded and controlled by veteran Sarawak United People's Party leader Chan Siaw Hee, whose son Seng Khai is the state assemblyperson for Batu Lintang (Kuching) and mayor of Kuching City South.

The senior Chan has left the running of the company - in which the state government has a 30-percent stake through Amanah Saham Sarawak - to his nephew William Chan, STC director cum general manager.

The company and its associated companies have one of the largest fleet of buses, many of which are long overdue for replacement or re-conditioning.

The Commercial Vehicles and Licencing Board Sarawak (CVLC) has ordered STC and other public bus companies in Kuching to submit their plans for the upgrading or reconditioning of many of their aging buses.

STC controls many of the routes in Kuching, and nearby areas - Samarahan, Sri Aman and even Sarikei divisions.

But in recent years, faced with the competition from kereta sewa (licenced taxis) and kereta sapu (illegal taxis) as well as other operators, it has curtailed many of its route services and retired a number of its aging fleet.

As the company is controlled by a well-known business family with strong links to SUPP and the state government, the authorities have been reluctant to take action against STC, such as withdrawing some of its routes despite the poor service.

It is believed Assar's investment in STC a few years ago was largely to help out with its cash flow problems after the company reportedly ran into dire straits, with difficulties in servicing loans and paying creditors.

The investment agency is reported to have invested 'many million ringgits' in the company and has not received any returns from its investments so far.

The deteriorating public bus services in Kuching have mainly been behind the reason for the CLVC in issuing licences for kereta sewa (11-seater yellow-top passenger van that ply designated routes within and around the city).

Learn from Singapore

Meanwhile, a local university lecturer told malaysiakini that it was high time Sarawak's public bus services be improved to meet the needs of the long insufferable commuting public.

"If existing operators cannot do the job, their licences should be withdrawn and given to someone else," Penang-born Dr Andrew Aeria said, adding it would be better for public transport be publicly owned and subsidised.

"The current operator is proof that the private sector cannot run bus companies. Publicly-owned is best, like in Singapore top quality service at affordable prices."

If Kuching is serious about its public transportation, it could operate as good a service as Singapore, argued Aeria.

"Penang had an excellent bus service once," he lamented.

Kuching's does not have monorail or underground rail services and residents without own transport depend on buses and kereta sewa to commute to work.

Only Miri - Sarawak's second-largest town and soon to be a city - has a superior public bus service, which is jointly operated by new and established operators.