Large contracts have been awarded under a so-called “Automated Enforcement System” to Australian and German firms linked to two obscure local firms holding lucrative concessions for the supply and operation of more than a thousand traffic cameras and related software.
The local concessionaires are responsible for “implementation and operational activities” – installing, commissioning and maintaining the cameras and operating control centres. The two little known companies were reportedly chosen via a tender process involving nine firms. (One of the nine firms, Tess Capital Sdn Bhd has reportedly lodged a report with the MACC.)
Critics have alleged the firms are controlled or linked to well-connected individuals.
Details of the deal:
Central and Southern regions (KL to JB corridor)
Local concessionaire: Beta Tegap Sdn Bhd
Shareholders: Nik Ismail Nik Mohamed, Datuk Mohd Yunus Othman, Yap Kim See @ Yap Ai Lin, Toh Puan Rozana Redzuan and Dr Andreas Teoh (Source: The Edge, 12 May)
Supplier: Redflex Traffic Systems Pty Ltd (Australia); Contract value: A$50m for 450 fixed speed cameras, 140 mobile cameras, extensive enterprise back office software, and implementation services; More details on the Redflex Holdings website.
Local concessionaire: A.T.E.S. Sdn Bhd (40 per cent owned by Commercial Circle Sdn Bhd and balance held by Traffen Force Sdn Bhd)
Shareholders of Commercial Circle: Foong Yook Seng @ Lawrence Foong Yook Seng, Michael Foong Ka-Meng, Norsiah Abu Asid and Mohd Zulkafli Ahmad Tazali (Source: The Edge, 12 May)
Commercial Circles’ revenue for FY2011: RM12m
Shareholders of Traffen Force Sdn Bhd: Chee Chwee Cheong (10000 shares) and Jendela Duta Sdn Bhd (50000 shares). (Source: The Edge, 12 May) (But who owns Jendela Duta?)
Supplier: Jenoptik (Germany); Contract value: 40m euros for 550 traffic monitoring systems; More details on Jenoptik’s website
Traffic offenders will pay the fines on the summonses to the government and the government then pays the concessionaire its share after the summonses have been settled. So there is very little risk to the concessionaires. Easy money.
The Edge (12 March), from which the above info was obtained, reports that this project was first mooted when Chan Kong Choy was transport minister while the letters of intent to the concessionaires were issued when Ong Tee Keat was transport minister.