The government is close to finalising a settlement package with the two primary operators initially appointed to run the Automated Enforcement System (AES), The Edge Financial Daily has reported.
The contractors, Beta Tegap and Automated Traffic Enforcement System (ATES), have taken their case to be settled at the Kuala Lumpur Regional Centre for Arbitration (KLRCA) after the government backtracked on its contract with them and took over AES operations in September 2013 through AES Solutions, a government-owned company.
The report adds that the case has been under arbitration for two years, but was due to be heard within the next couple of weeks. A source told the publication that the settlement could cost the government a tidy sum, with compensation of up to RM500 million each.
Both private firms were appointed to run the AES system, which was announced in July 2012, and each company was given distinct zones of operation – Beta Tegap was to handle the AES for the southern region, while ATES was responsible for the rest of the country, including Sabah and Sarawak.
Each also ran separate systems – Beta Tegap utilising gear from Australian-based Redflex Traffic System and ATES operating equipment sourced from German company Jenoptik Robot. The cost of installing and operating the cameras was to be borne by the two companies, with an estimated RM300 to RM400 million being bandied to get the AES going.
The companies were entitled to a share of the revenue collected from the fines to offset operational costs and generate returns, with revenue sharing done across a three-tier model. Tier one would see both operators getting RM16 from each valid summons in which the fine is collected, capped at five million summonses.
If the summonses exceeded five million, the second tier would see the companies taking 50% of the amount paid in fines. The cap for this tier was set at RM270 million a year, with the government taking an equal share. Beyond the RM270 million a year mark, a third tier would have seen both companies raking in 7.5% of the balance revenue and the government the rest. All, of course, if offenders paid up.
The entire network was to utilise around 800 fixed and 500 portable speedtrap cameras to ‘monitor’ traffic in 831 “black spot” areas on highways in addition to stretches of state and federal roads. Deployment began in September 2012 with the pilot stage of the project involving 14 cameras – with resistance to the project coming from many quarters, implementation has not progressed since then.
Looking to sell your car? Sell it with Carro.
So we are talking about RM1 billion since each gets 500 millions… And where do you get the money from?? That’s right.. From our pockets
“The cost of installing and operating the cameras was to be borne by the two companies, with an estimated RM300 to RM400 million being bandied to get the AES going.”
Here goes the money… corrupted how much? and you will be able to guess.
And normal Rakyat like us can’t do anything and just watch and wait they(cronies right) keep sucking Tax Payer money.
If complaint on to much, ISA looking for you…
Bolehland a top50 less currupted country??? I don’t think so…
of course lah! you don’t know how much it costs to install and maintain all the 14 cameras with all the super system! you no study camera install and maintenance how can you guys comprehend!
RM500 million and another RM500 million leh!
RM1 billion to install and maintain 14 cameras. that sounds about right.
bawahaha kah kah kah!
Taking Penang as a guide where there are 2.2 million registered motor vehicle owners, let us extrapolate this figure and times the 12 states (including Federal Territory) to determine the number of registered vehicles. We take the average of 2.2 million ( Road Transport Dept figures) as the average representing all states although some may have more and some perhaps less.
At best this is a very conservative estimate. Since our estimate is very conservative it follows that our final result will also be conservative. Since there are 12 states and each state has 2.2 registered motor owners , the total registered owners totalled 26.4 million. Let us further assume that at any point of time 50 percent of the registered vehicles are mobile on the road.
That means an average of 13.2 million vehicles will be plying the road at any given time in all the 12 states where the AES system is implemented. From the 13.2 million let us assume that 2 percent have committed traffic offences under the AES. That translate into a figure of 264,000 traffic summonses daily.
At the non negotiable rate of RM300 per summons, that translate into a daily figure of RM79,200,000 of money collected under the AES system. The share of the two private companies on a daily basis will be 30 percent of RM79,200,000 which translates to an income of RM23,760,000 per day.
On a yearly basis the income accrued would be RM8,672,400,000. And for the duration of the contract, which is 66 months, the total amount earned would be RM47,698,200,000 (i.e. RM47 billion, six hundred and ninety eight million and two hundred thousand.)
Please remember that the above figure for the traffic offenders taken was a lowly figure of 2 percent. If the figure had been 5 percent, the income earned would be astronomical.
Based on the above figure, is the Road Transport Department telling us the truth when they say that the implementation of the AES was not to reap exorbitant profit but to reduce road fatalities? Let Malaysians be the judge.
The 2 companies actually charged each camera over RM1 million to the Government. This is shocking. What super camera is this? It sounds like the Hubble Telescope. Even a more advanced Canon 700D SLR cost RM1800. But each camera the AES charged the Government RM1.
Why the whole deal fell through was very simple. Each crony company was projected to make at least 10 billion ringgit in clean profit per annum. Yes 10 billion and not million. This was based on the number of cars on the road and about 10% offenders.
A very modest figure of 10% offenders.
With this kind of profits, both the RM2 companies, who are just mere Sdn Bhds can earn more than any Bursa (KLSE) company earn in their annual profit.
This caused a lot of jealousy in the UMNO ranks and they were unhappy 2 crony companies got the contract. SO there were lots of fighting and turmoil going on until the whole AES fell apart.
In the end, we rakyat are the real losers. Now, our income tax money will be used to pay compensation to these 2 crony companies.
Imagine, just a small Sdn Bhd can make a clean profit of over RM10 billion per annumm. Wow!
It was supposed to be paid by traffic offenders from the beginning. But since law abiding Malaysians want to pay using their own money upfront, the government listens. If they do not want this upfront, then they should not have listened to politicians who had no clue and drivers who endanger everyone by speeding.
Go dig deeper and see who owns the 2 companies. It surely will be the distant relative, kakar ipar, bro in law, bro in law’s sister, nephew’s wife’s brother or cucu’s wife’s of some UMNO big gun.
That is how things work in Malaysia.
Don’t believe? Go dig deeper.
http://www.themalaysianinsider.com/malaysia/article/rm200000-more-for-each-speed-camera-because-of-training-says-govt
– Market price of each camera RM 15,300 (in US)
– 831 units of camera installed nationwide
Do the calculation yourself, how much is the total cost only weih?!
I knew, adding the installing cost, let’s say, give it another well paid of RM 15,000 as the cost of EACH of every single camera installed.
I knew, also need to include wiring, cabling and IT system for the cameras, give it a whopping RM 20 million lah..
Moreover, take another RM 200 million to build its offices in every state..
do the calculation yourself.. now G wanna compensation 1 billion to the 2 companies ah. . . no eye see…
http://www.themalaysianinsider.com/malaysia/article/rm200000-more-for-each-speed-camera-because-of-training-says-govt
– Market price of each camera RM 15,300 (in US) w/o import duties
– 831 units of camera installed nationwide
Let’s assume:
– 100 % of import duties for each camera
– Additional RM 20,000 as the cost for EACH of every single camera installed
– RM 25 million for wiring and cabling.
– RM 10 million to setup the IT system.
– RM 150 million for building the offices nationwide
Calculate the cost of implementing AES in Malaysia. After couple of years later, the G has to paid RM 1 billion to the two companies that in charge of this projects. Calculate the approximate total clean profit of the two companies combined, please.
Only deliver afew mockup test unit, get almost full payment. Amboi sedap nye. Hopeless
Stupid
Waste of our money
incompetent
target archieved!! 500mil. ka-ching
Govt compensate while use our tax payer money.another few million scheme to get rich while slaught rakyat money.
Yesterday was looking at the payslip. 26% of my hard earn money goes to “bersama-sama membangunkan negara”.
So this is what they are trying to do. Really get frustrated, and no people were to blamed for such decision that cost so much.
Furthermore, the 2 companies that is appointed totally has 0 experience in managing AES system, totally new to this system and can’t handle any crisis brought.
It is a daylight robbery with police and our Anti corruption officer sitting beside having a nice coffee watching the scene and chat about it.
wait what?…14 cameras in pilot stage now cost the government a tidy sum of 500m? Please tell me I am reading it wrongly.
Easy money. I also want to do business with gov if like this. Wonder if this case can be investigated under SPRM or they can be free with hundred millions due to stupidity of Gov’s ministers.
Anyone need more proof that the economy of our country is run by a bunch of clueless buffoons? Every so-called ‘demi rakyat’ project done by the government reeks of cronyism, corruption and incompetence. The AES, like GST is just another example for the G to milk the Malaysians dry.
1 beliyon for 14 cameras? 1 camera costs 71 miliyon?
Another case of buat dulu pikir later… and the people has to pay for the stupidity.
The camera lens made from crystal and diamond. Scratch proof highest quality.
Camera lens made from diamond and frame made with Adamantium. Lol
Im sure it’s “pikir dulu terus buat”
Best water fish ever but only certain ppl can makan.
Speed Limit: 25 KPH, I can see how easily money is made.
Another ‘white elephant’ project. Wasted money of taxpayers. Idiot Gov (JPJ at fault here..)
25kph???
i really donno what to say…
i really couldn’t understand how so many people can still pay extra to the tax sampah tong on top of the monthly dumping.
Another example.
Sangat bijak.
Where are the cybertroopers?
This is exactly as how we speculated since day one, no surprise at all. No need all the drama please! Its just making the people more annoyed!
The cybertroopers? Well I guess they are already long here and down voting every single comment in this post forging a “the rakyat supports the decision” phenomena. Please feel free to downvote here too, thanks!
I’m speechless… What kind of contract is this? How stupid can this be.
Rm500 each to compensate. I don’t brain this stupid compensation.
Every business contract has a termination clause la. If company A agrees to start the project then company B buys all stuff setup everything, then suddenly company A say cancel. Sure must compensate la.
Now brain this.
agak2 la nk compensate pun. Bukannya buat teknologi nk pi bulan. Psg kamera je pun. RM1bil frm tax payer money? What the fishh!!
Wow untung instantly… beribu ribu tahniah!!
Wahhh!! another Gerbang Perdana-JB-Sg crooked bridge…free money..compensation to up of 500million when their investment i am sure only hundredth of that. what kind of lopsided contract was this? Let us all open business in ambition to close it down. taxpayers money…now thinking hard not to pay tax. sigh!
Setup a Company, Implement a project, Award the project, Fail the project, Compensate the company, Enjoy the money.
another gerbang perdana aka JB-Sg crooked bridge. The owner now living like KING!! I also want this business la…paid to not doing my job..
You elected stupid government run by stupid and lousy people this is the result where our money gone. Good le bro.
For those of you who are unaware of the Maxima…
This is not the RM60k entry level car… the 2014 Maxima is a 3.5L 290hp car…
Oops sorry wrong thread
WTH ? For 14 cameras + this n that = RM500 million? Is really day light ‘daring sucker!’.
Patut lar rakyat suffering…
Hope ‘above up there’ will ‘teach’ them good lesson !
This shows we have a CARING government…
This govt makes sure whoever does business with them will be well compensated… and will never make a loss…
Sure win contract… wonder where else in this world u can find one of those..
These stupid AES cost 500mil of installing and servicing??!!!!!!!!!! Crazy shit.. Is a high-tech satellite cemera that shoots down from sky ah??? I dont know the cost of it, but im pretty damn sure with 500 mil, the gov can built a pretty well highway that wont be servicing the highway for 365 days for its road conditions and endangered the road users.
The G gives compensation to the contractors because they are crony companies. 1 billion compensation is too much? Not according to the G when they signed the contracts. Its ‘sendiri didahulukan’, BN-style.
Will this all be reported by the mainstream medias? Don’t be surprised if its swept under the carpet, just like the IMDB fiasco.
One of the biggest scam, I dont understand why it needs to be outsourced when it can be handled by the government itself
I dont understand why they need to back down from complaints either
That shows they never do their feasibility study properly
If its really for the safety of the public, they can go ahead and dont give a shit to any resistance
This is just so sickening. I mean, at least try to make it LOOK legit. This is as if they want us to know that they are idiots, not that we don’t already know.
What the….
Simple as that?
Why dont just let the contract run and use the money to help the recent flood victim.
It wont be enough but surely money better spent.
thanks a lot malaysian people….my last paycheque here =D….im gonna buy myself a cayman gt4 and ferrari 488
I don’t see why government should outsource the enforcement duty to private companies.
If we want to educate the people about the need to respect the law, we should do away with summonses.
In fact, we should do away with all fine type summonses and for something like this instead :
Points based system. Points stay for up to 2 years and will be reset and restarted.
15 points
-5 over speeding
-10 causing accident
-5 run red light
-15 road rage
-3 cars not according to spec
If points run out,
1st offense – suspend license 3 months, group counseling
2nd offense – suspend license 6 months, one-to-one counseling, reseat license
3rd offense – suspend license 2 years, reseat license, community service, one-to-one counseling, psychology test to determine psychotic behavior
4th offense – just stay in jail, don’t bother coming out
My suggestion requires more refinement but involves no money payment because the public sees it as ticket for breaking the law.
I know in some developed country, they give out bonuses to policeman for the summonses issued. Say, 1% for every ticket issued.
Money saved from clearing highway off accidents and dispatching patrol cars to incidents can be used to motivate authority.
What do you say, people? Can or cannot?
If only Malaysians can be educated, we would not even have a need for AES or any form of automated traffic enforcement system.
You think we don’t have a point system? You think we don’t have suspensions.
The worst is we keep adding laws but failing to enforce it properly
Each time they try to enforce and the public complaints, they went limp and chicken out
So good doing business with gov……guaranteed untung, tak untung gov pao sama lu, with rakyat money
my middle finger is raging…
Where do I sign up? Signing up to become govt cronies??
Easy money, big money, and best of all, GUARANTEED profit!!!
At first you protested against AES because the fines goes to crony companies. So now G have to compensate the crony companies also wat. What’s the difference?
You don’t break the law scared to pay what fine?
Agreed. Some very vocal ‘Malaysians’ have reached a stage that even good things done will be seen in a bad light. No thanks to some opportunistic politicians we can no longer be bi-partisan and take-the-good-leave-the-bad anymore. How sad we became.
We afraid that the total cost to start AES business at a whopping multimillion ringgit whereby the truth is the cost can be much much cheaper
Im still not sure if we need AES or not, at times i think we don’t but when i saw people driving recklessly fast, i wish AES caught them. Or do we Malaysian still prefer conventional police speed trap?