Y.B. DATO' SERI S. SAMY VELLU

Menteri Kerja Raya,
Kementerian Kerja Raya,
Jalan Sultan Salahuddin,
50580 KUALA LUMPUR.

29 January 2007
 

YB Datuk S. Samy Vellu,

Protest Memorandum Against Toll Hikes Of 5 Klang Valley Highways And Abuse Of The Official Secrets Act (OSA) Not To Make Public The Toll Concession Contracts That Guarantees Profits For The Few At The Expense Of All Malaysians.

DAP Selangor wishes to submit a protest memorandum to YB Datuk Samy for approving the toll hikes of 5 Klang Valley highways and abuse of the Official Secrets Act (OSA) as an excuse not to make public the toll concession contracts that guarantees profits for the few at the expense of all Malaysians. As taxpayers and motorists bearing the brunt of toll hikes, Malaysians have a right to know the contents of the contracts and the rationale for paying so much to the highway concession companies.

The failure of the government to be accountable and transparent by refusing to reveal the details of the concession agreement would reflect badly on Malaysia’s efforts to combat corruption, particularly in trying to improve its position and ranking under the Transparency International Corruption Perception Index. With last year’s position at No. 44, revealing the contracts would help to improve Malaysia’s position.

DAP Selangor condemns both BN and Samy for abusing the OSA to hide the contents from the public. The OSA is clearly intended to protect state secrets to preserve national security and interests. However the OSA is now clearly abused not to protect national security and interests but the private interests of companies which make exorbitant and extraordinary profits at public expense. Such abuses of power where the OSA is misused for private interests are the reason why DAP demands the abolition of the OSA.

By allowing the 5 Klang Valley highway companies to impose a 20-60% toll rate hike on 1 January 2006 despite already getting back their investment cost, the government is “abetting” these companies to reap huge profits at public’s expense. YB Datuk had revealed earlier that the government paid compensation of RM 4,864 million to the 5 Klang highways. This is RM 739 million more than the construction cost of RM 4,125 million for the 5 Klang Valley highways.

Further, the RM 4,864 million in compensation paid does not include the toll collected directly from the public by the highway companies, which would be extra profits earned by them. Isn’t it cheaper for the government to either build the highways themselves or buy the highways from the companies?

Hiding behind the OSA can not cover up the fact that the RM 4,864 million compensation paid by the government alone is enough to pay for the construction cost without including the tens of billions ringgit more collected from motorists. There is no economic rationale or financial sense for the government to refuse to buy over the highways when buying it over is cheaper and more cost-effective.

Why let the 5 highway companies make RM 739 million mid-way through their concession period ending between 2024-2035? From now on, any toll collected from profits or compensation paid by the government is profits for the companies.

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. Worse these highway companies are guaranteed profits and protected against risks of losses making all 27 Malaysians as the real losers.

If the BN government respects the people as their masters, then YB Datuk should heed the people’s demand in the Klang Valley to abolish the toll hikes and make public the toll concession agreements.

Thank you.

Ean Yong Hian Wah

DAP Selangor Chairman