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Thursday, July 5, 2012

ALL IN THE FAMILY: MCA-held ministry splits traffic spoils with MCA-linked company?

ALL IN THE FAMILY: MCA-held ministry splits traffic spoils with MCA-linked company?
A company linked to Chinese-only party MCA has been awarded the automatic traffic enforcement system (AES) contract by the Transport ministry, whose minister is the party's secretary general Kong Cho Ha.
Beta Tegap Sdn Bhd has been awarded the job alongside ATES Sdn Bhd to install traffic observation cameras to nab traffic offenders on southern and northern side respectively.
Prior to this, a report in financial weekly The Edge revealed that the two companies would install cameras at 831 spots, and both companies would be entitled to RM16 per summons for the first five million issued. The remaining revenue will be shared with the government up to a cap of RM270 million each, according to the paper.
MCA president Chua Soi Lek had earlier denied that Beta Tegap was linked to his party, and the company's chairman had publicly thanked Chua for the statement.
“We would like to thank Dr Chua for confirming that Beta Tegap Sdn Bhd ‘is not a company related to MCA’ in his press statement dated April 16, 2012,” its chairman Nik Ismail Nik Mohamed was quoted by The Malaysian Insider last April.
But PKR treasurer William Leong pointed out that one of Beta Tegap's directors Arianta Alikusno had close links with MCA leaders.
“Arianta was given a huge contract in 2005 by the Health Ministry through Mediharta Sdn Bhd,” he added.
Leong , the Selayang member of parliament, said a search revealed that Arianta and son Andres Teoh are directors of Mediharta and Beta Tegap – both awarded projects from ministries helmed by MCA leaders.
“Is it merely coincidence?” he asked.
Leong also questioned the profit-sharing deal between the companies
"Once it’s over 5 million [summonses], the Transport Ministry will get 50 percent and both companies will receive the other 50 percent,” he said, adding that both Beta Tegap and ATES could potentially earn up to RM272 million a year.
“As such, both companies have targeted to issue at least 10 million summonses a year,” he revealed.
Leong said another 7.5 percent would be given if summonses issued breached the 10 million mark.
Leong recalled that Pakatan Rakyat had opposed the Road Transport (Amendment) Bill which allowed motorists to be fined at minimum RM300 to maximum RM2000.

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