Tug of war over automated traffic summons as firm linked to Najibs aide wins deal

By Shannon Teoh

April 15, 2012

The RTD explains which the high fatalities upon the Malaysian roads will shortly be marked down with the automated enforcement system. - Picture by Jack Ooi

KUALA LUMPUR, April fourteen An automated enforcement complement (AES) plan for trade summonses to be put in place by Sep has resulted in melancholy from the police after the Road Transport Department (RTD) dished out the understanding to two firms, the single linked to the tighten confidante of the budding minister.

ATES Sdn Bhd as well as Beta Tegap Sdn Bhd, which has denied rumours it is linked to MCA, will spend in between RM300 million to RM400 million any to set up trade cameras during 831 "black spots" national in the pierce which the little in the police force perspective as an encroachment in to their turf, according toThe Edge.

ATES Sdn Bhd's executive Chee Chwee Cheong is also the founding partner of influential advisory house Ethos Consulting headed by Omar Mustapha, the former special military military officer to Datuk Seri Najib Razak.

"Those who are happy contend the police can right away focus upon policing but imagine if your purpose is which of the trade police officer. What will your purpose be right away which we have these cameras?" the commercial operation weekly quoted the source tighten to the deal.

But RTD director-general Datuk Solah Mat Hassan told the journal the complement will usually be set up in areas with high incidences of fatal accidents.

"About 6,000 people die in highway accidents any year. That's quite alarming. That is usually the fatal collision figures. What about alternative non-fatal accidents?" he was quoted as saying.

However,The Edgereported which the police is said to be firming up skeleton to boost its own! trade c amera system.

According to the weekly, any company will expected emanate 10 million current summonses over the five-year period from which all paid summonses will be deposited in to the account from which the firms will replenish their investment.

ATES, which has denied Omar's impasse in the project, as well as Beta Tegap will be paid via the three-tier complement which the journal says will concede them to replenish more than the 17 per cent rate of return, fuelling speak of swain deals.

But Solah toldThe Edgeboth companies contingency return the additional to the supervision if they exceed the 17 per cent inner rate of return (IRR).

Each company is entitled to RM16 per current court order for the initial 5 million issued as well as then separate the superfluous income evenly with the supervision up to the cap of RM270 million each.

Both firms will any embrace 7.5 per cent from the superfluous income as well as the supervision will keep the rest.

The Edgeestimated which half the summonses, any carrying the penalty of RM300, will be paid, resulting in the account distance of RM1.5 billion per company. This would amount to RM416 million paid to any contractor.

This would be the handsome return if the companies conduct to keep costs closer to RM300 million, even if the entire investment is created down after the five-year concession.

The RTD says unpaid trade summonses in between 2005 to 2009 amounts to RM5.8 billion.

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