When you pay your traffic summons in future, two companies will eventually get a slice of the money under the impending privatisation of traffic cameras and surveillance.
Under the ‘automated traffic enforcement system’, the two companies are Beta Tegap Sdn Bhd (for the central and southern regions of the peninula) and ATES Sdn Bhd (for the northern region, Sabah, Sarawak and Labuan).
The financial model is reportedly as follows:
Tier 1: For the first five million summons collected, RM16 per summons will go to the company. (Thus, company stands to make RM80m under this tier).
Tier 2: If more than 5 million summonses are issued, the company will receive 50 per cent of the balance of the summons collected (after deducting what is due to the company under Tier 1). The government gets the other 50 per cent. The maximum allowed for the company under this tier is RM270m.
Tier 3: After deducting what is due in Tiers 1 and 2 from the summons collected, the company will get 7.5 per cent of the balance and the government keeps the rest.
Assuming there are are 10 million summons issued and collected per year each with a RM300 penalty, the total summons collected would be RM15bn. Of this, the company would get RM80m under Tier 1, RM270m under Tier 2 and RM66m under Tier 3 = RM416m or 28 per cent of the summons collected.
The above example was provided in The Edge, 16 April 2012.
Beta Tegap and ATES reportedly have to spend RM300m and RM400m respectively to get the automated traffic enforcement system running. The cameras and automated systems are to be imported from Australian (A$50m) and German (40m euros) suppliers. The concession period is five years.
How fast these two obscure concessionaires recover their investment cost and make a profit will depend on how many summons are issued – and paid up. Sweetheart deal or not? What do you think?
Will the automated transport enforcement system work under this financial arrangement? Will the public ‘buy into’ this system?
Is this privatisation of cameras and monitoring systems justified in the first place?