Media Statement

by Lim Guan Eng

(Petaling Jaya, Saturday): Works Minister Datuk S. Samy Vellu wants the cabinet to direct the Attorney-General take action against those responsible for ‘stealing, leaking and exhibiting’ toll concession agreements because it is a classified document under the OSA. Samy is barking up the wrong tree as Malaysians are not interested in who “stole” the toll agreements documents as to who “stole” the wealth of Malaysians of tens of billions of ringgit.

On September 22 last year in Parliament, Datuk Samy revealed that the government had RM38.5 billion in compensation to the 20 highway concession companies. The first toll collection began at the Shapadu highway in Klang in 1984 followed by the North-South Expressway in 1988.Of the total RM38.5 billion, the government paid RM1.76 billion in cash while the remainder was in tax exemption and extending the concession period.

Clearly the RM38.5 billion in compensation to the 20 highway companies does not include the toll collected from motorists using the highways. Hiding behind the OSA can not cover up the fact that the RM38.5 billion 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.

Prime Minister Datuk Seri Abdullah Ahmad Badawi has disappointed Malaysians by failing to fulfill his promise to be transparent and accountable in justifying why the government paid compensation of RM4,864 million or RM739 million more than the construction cost of RM4,125 million for the 5 Klang Valley highways. Again the RM4,864 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.

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 RM739 million mid-way through their concession period ending between 2024-2035? 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.

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. Privatisation should result in efficiency gains as well as reduction of costs to government. However this has not happened in the privatization of our highways where the costs to the government continues to escalate until it exceeds the construction costs.

Worse these highway companies are guaranteed profits and protected against risks of losses. For profits only to be privatized but losses socialized is not privatization but piratisation as the government and people do not save costs but bear higher and higher costs that benefits only the few individual companies.

DAP condemns both BN and Samy for abusing the OSA to hide these facts 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.

(27/1/2007)