Two AES concessionaires may earn RM700 million a year

News reports indicates that 63,558 traffic offences were recorded for the first eight days after the automated enforcement system (AES) was launched on September 23rd by 14 cameras that had been installed at accident-prone locations. Presently, the cameras record speeding or traffic light offences but will be used in future to detect other traffic offences, such as queue jumping and illegal overtaking manoeuvres.

New Straits Times even calculated that based on the figures obtained during those eight days, more than 170 million summons will be issued each year when all the 831 cameras -- 566 for speeding and 265 for traffic light violations -- are installed nationwide in the next 18 months. In other words based on New Straits Times calculation, the Federal government and the concessionaires stand to collect RM 51 billion if RM300 fine is imposed for the 170 million summons in one year alone! This 170 million summons or RM51 billion in fines is a ridiculous calculation by New Straits Times and a more likely figure of fines imposed is over RM 5 billion in one year, still a huge sum by any standard.

The project, which was mooted nearly a decade ago, has faced fierce opposition because its concessionaires – ATES Sdn Bhd and Beta Tegap Sdn Bhd – are able to recoup their expenditures through a three-tiered system paid out from a pool of settled summons:

  • Tier 1: RM16 for each of the first five million summonses issued (RM80 million).

  • Tier 2: 50% of the balance of the revenue collected for the next RM540 million, up to RM270 million. The government gets an equal amount.

  • Tier 3: 7.5% of the remaining revenue after that. The government will get to keep the rest.

Assuming more than RM5 billion collection per year, the two concessionaires will gain RM80 million under the first tier, RM270 million under the second tier and RM350 million under the third tier – a handsome total of RM700 million for one year’s work.

Apart from reaping the revenue of RM700 million a year, there is skepticism of the huge cost claimed by both concessionaires in installing the 831 cameras. Does it cost RM 600-800 million as claimed by both company to install the 831 cameras which would cost RM722,000-RM962,000 per camera? The Transport Ministry must fully account to the public these questions and whether there was an open competitive tender. Unless such issues are fully addressed, Malaysian motorists have a right to be angry that cronies of BN has once again benefited fully at the expense of ordinary Malaysians.

DAP calls for an immediate suspension of the AES until there is a full accounting of these issues of public interest.

Najib Tun Razak’s Refusal To Fully Disclose And Account For The S$16 Million Or RM40 Million Donation To Sabah UMNO That Timber Trader Michael Chia Was Detained In Hong Kong For Attempting To Smuggle Out The Singapore Currency Is Similar To BN’s Refusal To Publicly Assets Of Prime Minister, Ministers, Menteri Besars and EXCO Members.

Prime Minister Datuk Seri Najib Tun Razak’s refusal to fully disclose and account for the S$16 million or RM40 million donation to Sabah UMNO that timber trader Michael Chia was detained in Hong Kong for attempting to smuggle out the Singapore currency is similar to BN’s refusal to publicly assets of Prime Minister, Ministers, Menteri Besars and EXCO Members. In 2008, timber trader Michael Chia was detained in Hong Kong for attempting to smuggle RM40 million in Singapore currency which Michael claimed was meant for Sabah Chief Minister Datuk Seri Musa Aman.

Minister in the Prime Minister's Department Datuk Seri Nazri Aziz's parliamentary reply stated that the Malaysian Anti-Corruption Commission or MACC had cleared Musa on charges of corruption and money laundering because the money constituted political donations to UMNO Sabah and not to Musa. Yesterday, Prime Minister Dato' Sri Najib Razak became the latest government leader to whitewash the Musagate scandal by stating that the smuggled cash worth RM40 million is acceptable because it is a political donation.

“Every political party has a right to receive political donations,” said Najib, adding that the political donation was done in a proper and acceptable manner. How can RM40 million donation that was attempted to be illegally smuggled out of Hong Kong be considered as done in a proper and acceptable manner?

This contrasts fully with DAP’s fund-raising drive during our party dinners where the amount collected is announced to the public at the same night. Of course the amount collected is nowhere to be compared to this RM40 million. If Najib truly believes that RM40 million in smuggled cash constitutes an acceptable political donation, then he should have no problem to open UMNO’s books to the public.

It is difficult to believe that a Chinese timber trader would genuinely support a racist party like UMNO that survives by being anti-non-Malay. How can Najib prove his seriousness in fighting corruption if he refuses to explain the source, the questions for what purpose and the conditions attached. Worse is that he consider illegally smuggled cash as done in a proper and acceptable manner, leading to questions whether there are more of such RM40 million transactions for UMNO Sabah and UMNO Malaysia?

Lim Guan Eng DAP Secretary General & MP for Bagan