KUALA LUMPUR, 2 Apr: The Federal Government should have the mechanism to protect the interests of the people in managing toll concessions rather than continue to pay compensation to concessionaires.
The Member of Parliament for Sepang, Hanipa Maidin, said that the Federal Government should take over the minority share of 24 percent in order to reduce the cost of taking over the toll concessionaires because they have the greatest stake in PLUS.
“The government has the largest share through Khazanah of 76 percent and if they pay back the minority stake of about 24 percent, the government can certainly reduce the cost to acquire the toll concession,” he said in a press conference at the Parliament lobby.
Hanipa said that the Federal Government will still pay toll concessionaires even though the toll rates are not raised.
For example, he said, the concessionaire for the LDP and Litrak highways have made huge profits by receiving RM89 million in compensation because there is no toll hike.
“Even by not rising toll rates, concessionaires still profit, which means they are in a constant state of profit,” he said, and was also acknowledged by the Member of Parliament for Shah Alam, Khalid Samad.
Hanipa explained that the Federal Government may use its power to take back the toll because it is not practical and is not profitable when the government postpones toll increases but is in a constant state of loss.
“We are disappointed by the way to government is postponing toll increases with additional promises and increasing the agreement period is seen as not solving the problem because the public funds are still being used,” he added.
Earlier, in an oral question, Hanipa questioned why the government did not want to take over the administration of highways to avoid the government from continuing to pay compensation to concessionaires by not raising toll rates as per the terms of the agreement.
However, the Minister of Public Works, in a written reply, said that Hanipa’s proposal will give high financial implications to the government of more than RM400 billion.
In fact, the acquisition will be treated as nationalisation that gives a negative impact on capital markets and the government’s image among foreign investors.
The total toll compensation paid by the government to concessionaires until the year end of 2012 amounts to RM2.8 billion.
