Loke: Unpaid AES summonses would not have benefited Government
Monday, 20 Aug 20181:23 PM MYT
by joseph kaos jr
PUTRAJAYA: The RM435mil in unpaid Automated Enforcement System (AES) summonses would not have benefited the government,as the collection would have gone to two concessionaires instead, said Transport Minister Anthony Loke.
He said the agreement formed by the previous government with the concessionaires was so “lopsided” that the two firms would easily get a profit and a return of their investments.
“The collection would go to the two companies operating the AES, due to the lopsided agreement made with the previous government in 2012,” said Loke at a press conference held at his ministry on Monday (Aug 20).
He said there were two tiers in the agreement with the operators, adding that under the first tier, the government paying RM16 to the operators for every single summons issued regardless of whether the summons is paid
He said that under the second tier, the companies would receive 50% out of RM300, for every summons that has been paid, adding that from the 23,640 summonses that were paid, the two companies earned RM1,045,304 in 2012.
Loke added that in 2016, the previous government reduced the AES summonses to RM150 from RM300.
“As the agreement for Tier 2 was that the company will receive 50% out of RM300 for summonses that are paid, that means, after 2016 any sum paid for summonses will fully go to the two operators.
“That’s why it is better to cancel the unpaid summonses,” said Loke.
The minister said the two companies, Syarikat ATES Sdn Bhd and Beta Tegap Sdn Bhd, have so far raked RM129,097,436 from the Tier 1 and Tier 2 payments.
“In 2015, the government instructed LTAT (Lembaga Tabung Angkatan Tentera) to take over the two companies. The government used RM555mil of LTAT’s money as compensation to the two companies.
Loke said that the assets belonging to the companies was only 47 speed cameras in the country, of which only 38 are operational.
He added that the cost of one camera is about RM250,000, which meant that the companies invested just over RM10mil to install the 47 cameras.“The companies not only easily got a return of their investments, but profited after that," said Loke.
Read more at https://www.thestar.com.my/news/nation/2018/08/20/loke-unpaid-aes-summonses-would-not-have-benefited-government/#XdHeorXRZBwuIe2l.99
Only a fool would sign AES
agreement, says Loke
(Updated)
Posted on 20 August 2018 - 12:57pm
Last updated on 20 August 2018 - 06:01pm
Last updated on 20 August 2018 - 06:01pm
PUTRAJAYA: Transport Minister Anthony Loke today described the Automated Enforcement System (AES) as one that "only a fool would sign."
According to him, this is because proceeds from the AES summonses would go to the two concessionaires, Ates Sdn Bhd and Beta Tegap Sdn Bhd, and not the government.
"Even if we collect all the outstanding summonses, it will not become government funds," Loke said in a press conference at the ministry's office.
"It will be paid to the two AES concessionaires. It was a very lopsided deal that mostly benefited the two companies which was why the government decided to cancel it.
"We also disagree that enforcement was privatised. This was why some people weren't happy and took the matter took court. This is why we decided on cancelling the AES, six years since it was left unresolved."
Loke said since the agreement was signed in 2012, almost RM129 million was paid to the two companies in two tier payments.
"And after the summonses was reduced to RM150 from RM300, the whole amount went to the companies. The government never benefitted from this agreement," he added.
In the first tier, a RM16 fee has to be paid to the concessionaires for each summons issued, even if the fine is never paid. In the second tier, 50% of the summonses paid have to be given to the concessionaires.
This agreement was signed when MCA's Tan Sri Kong Cho Ha served as the transport minister.
Reacting to the outrage by the National Patriots Association (Patriot) over the use of Armed Forces Board Fund (LTAT) by the previous government to pay RM555 million to the two companies to take over the AES, Loke revealed the original shareholders of the company.
The shareholders for ATES Sdn Bhd, Traffen Force Sdn Bhd and Commercial Circle (Malaysia) Sdn Bhd For Bata Tegap Sdn Bhd, were Dr Andreas Teoh, Datuk Mohd Yunos Othman, Rozana Redzuan, Gen Tan Sri Nik Ismail Nik Mohamed and Datin Yap Kim See.
Loke announced on Friday that the government was wiping off 3.1 million summonses issued under the privatised system, with a combined value of RM435 million in potential fines pardoned.
