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No more secret PDF Print
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Monday, 17 November 2008 09:33

by R. Nadeswaran and Terence Fernandez, The Sun

The government has declassified toll concession agreements. This means the contents of the contracts, which have for long been speculated as one-sided agreements benefiting toll concessionaires, will no longer be classified as official secrets.

Sources said that with the decision, made at a recent cabinet meeting, having or having knowledge of the contents of these agreements no longer constitutes an offence under the Official Secrets Act (OSA).

However, this is where the good news stops, as the ball is still at the feet of the toll concessionaires.

Although the agreements no longer fall under the OSA, a non-disclosure clause in the agreements prevents them from being made public.

"Therefore, it is now up to the companies to waive their rights under the clause to make them public," said a source.

Although the accounts, including the profit and loss statements of all these companies, can be collated from filings to Bursa Malaysia or the Companies Commission of Malaysia, many are said to be reluctant to make the concession agreements available for fear of the lop-sided clauses becoming public.

For example, according to PLUS Expressways Bhd, which controls 85% of concessions, its concessions are worth RM8.7 billion.

Apart from PLUS, concessionaires include Penang Bridge Sdn Bhd, Besraya (M) Sdn Bhd, Elite, Grand Saga Sdn Bhd, Kesas Sdn Bhd, Litrak, New Pantai Expressway Sdn Bhd (NPE), Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd and Sistem Lingkaran Lebuhraya Kajang Sdn Bhd (SILK).

The government’s decision, a source said, was based on the fact that it feels citizens have an inherent right to know where and how their tax monies are being used and the non-disclosure clauses have been widely interpreted to mean that the contracts are skewed in favour of the concession companies.

"While the government had to fulfil its obligations, it felt the tolls were a burden to the people and that they be fully aware of the commitments," said one source.

Prime Minister Datuk Seri Abdullah Ahmad Badawi had as far back as February last year opined that the agreements should be disclosed to the people.

However, his then works minister Datuk Seri S. Samy Vellu had consistently used the OSA to enforce the non-disclosure clause and even suggested that opposition leaders who were in possession of the agreements be prosecuted. He also decreed that periodic toll increases were included in the concession agreements without providing details or reasons for the existence of such terms.

Samy Vellu’s successor and former deputy, Datuk Mohd Zin Mohamad, has however taken the approach of revisiting agreements with highway concessionaires with the possibility of reducing toll rates.

"Toll reduction is one of the possibilities after all the studies.

"We want to look at traffic volume, operations, maintenance cost and payback to financiers. We also want to see what are the future values and the current values. We can bring the future values to current values and (the concessionaires) can repackage and refinance to reduce the burden of the people. That is one option," he was quoted as saying in June.

He had said the ministry was reviewing many of the agreements with a view to include a clause which does not allow the toll rates to be raised.

"If the traffic volume exceeded a certain value, the rise in toll rates could be avoided. Ministry officials are already in the process of renegotiating the agreements with the concessionaires," Mohd Zin had said.

A source said the declassification of the toll agreements is one of the reforms Abdullah has implemented as part of the changes he promised to make before leaving office next year.

On Sunday, Berita Minggu reported on its front page that PLUS is expected to announce tomorrow a reduction of the toll rates for highways it manages.

The report quoted Mohd Zin as saying that this was the agreement achieved from the negotiations with all concessionnaires a few months ago.

Comments (9)Add Comment
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written by truthbespoken, November 17, 2008 09:51:32
Better late than never! If there are worms in the can, they must be quickly removed for public interest.
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written by nothing less, November 17, 2008 09:59:41
PR goverment in waiting should propose the freedom of information act like the UK to stop all this nonsense undertable and corrupted govt dealsso that they can be exposed to the real bosses thats the RAKYAT.
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written by PRman, November 17, 2008 10:42:03
If the highway companies refuse to disclose, our govt can slap heavy taxes to punish them for their acts. Govt has increases taxes to oil palm and energy companies, i don't see why can't they use their political tools to force these companies to comply. Unless.... SemiValue is frightening for ...???
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written by Ray, November 17, 2008 10:43:10
Samy NoValue and Mahaitiu should be hang for all this toll concession agreements.
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written by Democrats, November 17, 2008 10:49:48
The concessionaires will never disclose the numbers. Too much skeleton in the closet. Everything there is hiked up like crazy to trim profits and to show governments how they are not earning enough so that can continue to increase rates or prolong concession tenure.

I have heard contractors that are doing PLUS works that are at the 7th subcontractor level. Imagine if each contactors just make 5% by subcontracting, the value would have been hiked up by as much as 40%.

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written by lamepug, November 17, 2008 10:51:02
"Toll reduction is one of the possibilities after all the studies."

is this the best Be eNd govt can come up with??

then it will drag anothers 10 ~ 20 years to collect tolls, is like never ending story... smilies/angry.gif

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written by zonefinder, November 17, 2008 11:03:57
This is a major source of corruption for the BN cronies and only way to arrest this malaise is to change the govt.
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written by aiyomanaboleh, November 17, 2008 11:18:49
You mean all this while, the agreements need not be OSAed?

What incompetency and if one was the private section, you would have got the "boot".

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written by mentora, November 17, 2008 23:56:28
I don't know about everyone else, but doesn't this look like bread crumbs for the people to follow AWAY from the government.

Looks like the gov is trying to shift the eyes of the people away from them. Since the gov have been taking heat after heat, what better way to escape than to re-focused the people's anger on a new enemy.

Well... whatever it may be, the gov is still at fault. Transportation is crucial to the public and privatising it was and still is a stupid move.
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