Has the Najib Tun Razak and the government imposed a media blackout on the irresponsible toll hikes in the 5 Klang Valley highways to avoid explaining why they have paid compensation of RM 4,864 million when the construction cost is only RM 4,125 million?

Press Statement

by Lim Guan Eng

(Petaling Jaya, Sunday): DAP condemns the media blackout imposed by the government over the 20%-60% toll rates hike as an abuse of authoritarian powers to stifle and silent the voices of ordinary Malaysians but also seriously undermining press freedom that would only pose a grave threat to democracy in Malayisa. There is mounting public anger over the toll hikes seen as “highway robbery in broad daylight that sells out” the rights of motorists, consumers and ordinary Malaysians to big corporations, especially when the total construction cost of RM 4,125 million does not appear to justify the toll rates to be paid as follows:-

• RM 1.42 billion Lebuhraya Damansara-Puchong (LDP) with a concession period of 1996-2030, its toll rate rise from RM1 to RM1.60, an increase of 60 percent.

• RM 1.3 billion Kesas Highway with a concession period of 1993-2024, the toll rate increased from RM1.50 to RM2.20, a 46.7-percent hike.

• RM 336 million Cheras-Kajang Highway's with a concession period of 1995-2026, the toll rate increased by 30 cents - a hike of between 42.9 and 50 percent.

• RM 568 million Kuala Lumpur-Karak Highway's Gombak with a concession period of 1994-2032, its toll rate increased between 20 and 25 percent; and

• RM 501 million Guthrie Corridor Expressway with a concession period of 2000-2035, its toll rate went up from RM1 to RM1.40 - a 40-percent increase.

So widespread is the public anger that Deputy Prime Minister Datuk Seri Njaib Tun Razak has intervened together with Works Minister Datuk S. Samy Vellu to take “preventive measures’ by directing all mainstream media to impose a media blackout of negative public reaction towards the toll hikes. Has Najib imposed a media blackout on the irresponsible toll hikes in the 5 Klang Valley highways merely to avoid explaining why they have paid compensation of RM 4,864 million when the construction cost is only RM 4,125 million?

Samy had revealed that the government had to incur a cost of RM2,589 million in compensation to the five concessionaires to prevent toll hikes from rising much higher than the present 20-60% proposed to take effect from Jan 1, 2007. Samy also said the government had already compensated a total of RM2,275 million to the operators of four of the five highways, not including Guthrie Corridor which is a new highway, comprised as follows:-

• Compensation of RM 1,197 million for the Kuala Lumpur-Karak Highway;
• Compensation of RM 479.7 million for the Lebuhraya Damansaray-Puchong Highway;
• Compensation of RM 371.8 million for the Kesas Highway; and
• Compensation of RM 226 million for the Cheras-Kajang Highway.

Would not it be more economical if the government just buys over the five highways by paying the concessionaires in full for the total construction cost of RM 4,125 million? Paying RM 4,125 million will be RM 739 million less than the RM 4,864 million of compensation paid until the next review in toll rates between 2010 and 2012?

DAP regrets that the government has refused to consider DAP’s triple win solution for the nightmare of frequent toll hikes in the Klang Valley by buying over the 5 highways concessionaires. Such a move will not only save the government billions of ringgit in compensation, avoid losses to the toll operators but reduce the burden of consumers from facing unreasonable toll hikes.

However clearly such a triple win solution would deny huge profits to the highway concessionaires. Before the concession of the 5 Klang highways ends between 2024 to 2035, the government has already paid compensation of RM 4,864 million, which is RM 738 million higher than the construction cost of RM 4,125 million. This is already profit in hand of RM 738 million earned by the 5 concessionaires, without taking into account any extra increase in collections in tolls from motorists. This RM 4,864 million compensation amount would only increase further, and profits of the highway concessionaires rise in tandem, when the next review of toll rates begins in 2010.

Instead of buying over the 5 highways to benefit both consumers and the national interest, the government has decided to impose a media blackout to silence reasoned discussion and stifle democratic expression. This would unravel, undermine and undo the good progress made by Malaysia during the past year in the world press freedom rankings. Malaysia jumped 21 spots from 113th position in 2005 to 92nd this year in the Reporters Without Borders’ (RSF) World Press Freedom Index, ahead of other countries in the region such as Singapore, Thailand and Indonesia.

Malaysia does not deserve its 92 ranking in the World Press Freedom Index when press freedom means freedom to oppress, suppress and repress the truth.

Such media blackout imposed by the government only highlights why it is so important to dismantle the instruments of repression of free press and speech such as Printing Presses & Publications Act (PPPA), Sedition Act (SA), Internal Security Act (ISA) and Official Secrets Act (OSA) as well as make oppression of human liberties a thing of the past with a new Freedom Of Information Act (FIA).

Prime Minister Datuk Seri Abdullah Ahmad Badawi had expressed delight at the improvement to the 92nd ranking out of 168 countries by the RSF. However DAP predicts that Malaysia’s position would only slip backwards next year just as Malaysia ranking in the Transparency International Corruption Perception Index slipped 7 places from No. 37 when Abdullah became Prime Minister in 2003 to No. 44 in 2006.

Malaysia clearly does not deserve its 92nd ranking in the World Press Freedom Index when there is no press freedom to publish the financial hardships faced by ordinary citizens as a result of rising toll hikes, fuel prices and cost of living. Press freedom in Malaysia is an illusion as there is no freedom except the freedom to oppress, suppress and repress the press from publishing the truth.