Ten driving schools nationwide have filed a suit against the Road Transport Department director-general, Umno Youth and the government in seeking a declaration that Prime Minister Najib Abdul Razak's Bantuan Lesen 1Malaysia (BL1M) is wrong in law and should be withdrawn.
In the suit they filed at the High Court in Kuala Lumpur, they claimed they are facing heavy losses as a result of "a conspiracy" to affect their economic interests.
They claimed that as a result of the BL1M programme for motorcyclists launched by Najib earlier this year, they will only be paid between RM130 and RM150 out of the fee of RM199 imposed on prospective B2 (motorcycles under 250cc) licence learners.
They further said that the agreed fare based on the Driving Institute Licence Committee directive, through its letter dated Sept 27, 2009, is RM261.
In the suit they filed at the High Court in Kuala Lumpur, they claimed they are facing heavy losses as a result of "a conspiracy" to affect their economic interests.
They claimed that as a result of the BL1M programme for motorcyclists launched by Najib earlier this year, they will only be paid between RM130 and RM150 out of the fee of RM199 imposed on prospective B2 (motorcycles under 250cc) licence learners.
They further said that the agreed fare based on the Driving Institute Licence Committee directive, through its letter dated Sept 27, 2009, is RM261.
The 10 driving schools are Arah Muara Sdn Bhd, MSDC Sdn Bhd, Akademi Memandu Ngah Sdn Bhd, Institut Memandu IKMP (Perlis) Sdn Bhd, Jimat Canggih Sdn Bhd, Express Track Sdn Bhd, Akademi Memandu Mega Sdn Bhd, Akademi Memandu Kuala Pilah Sdn Bhd, Akademi Memandu Anda Sdn Bhd and Gabongan Sekolah Memandu (Hilir Perak) Sdn Bhd.
The driving schools are members of Malaysian Driving Institutes Association (PIMA).
The driving schools named former RTD director-general Solah Mat Hassan, Umno Youth city affairs secretariat chairperson Tengku Azman Tengku Zainol Abidin, MY EG Services Sdn Bhd, the RTD director-general and government as defendants in the suit filed in August.
In their statement of claim, the 10 driving schools said the BL1M program was initiated by the Umno Youth secretariat, where MY EG is required to manage and administer the programme by collecting the RM199 fee from each learner driver.
Driving schools which have more than 300 people will receive RM130 each, while those having fewer than 300 will be paid RM150 each.
The remainder is the administration and exam fees which will be held by MY EG. The company and Umno Youth will be tasked with bringing the students to the driving schools.
‘Driving schools not consulted and threatened’
While Najib launched BL1M in Alor Setar, they were not consulted nor had agree to its participation in the programme and have expressed their protest individually or through PIMA.
PIMA had recorded its strong protest of the BL1M programme to Najib via letters dated Jan 29, Feb 28 and a memorandum dated March 4, 2013.
The driving schools alleged that the defendants had unlawfully conspired to affect their economic livelihood.
On March 11, a meeting was held between Solah and his deputy Ismail Ahmad (who later rose to become RTD DG) and PIMA, where Solah had allegedly threatened that any driving schools which do not accept the BL1M programme would be suspended.
Another meeting was held two days later where Solah said the RTD had to intervene although it is not a programme by the Federal government and that BL1M would be implemented with or without the driving schools’ agreement.
They claimed the defendants knew the shortfall in the payment of between RM130 to RM150 each compared to RM261 that was agreed previously. The plaintiffs claimed that neither MY EG nor Tengku Azman have any permit to operate driving schools.
Through their alleged bad intention, the BL1M programme was implemented despite the protests.
As a result of this, the 10 driving schools claimed they suffered losses and aggravated damages in the form of drastic reduction of the fees and income of the companies.
They further claimed that the RTD director-general had violated his statutory duty in not preventing the Umno Youth secretariat from conducting the programme and this allegedly resulted in discrimination to the plaintiffs.
The driving schools further alleged that in a meeting with Ismail on April 19, he pledged to resolve the issue with MY EG, but to no avail.
Prayers sought
Besides seeking BL1M to be declared unlawful, they are also seeking an injunction on Tengku Azman and MY EG from conducting the programme.
They also want general damages to be assessed by the court, and other relief given by the court.
The plaintiffs were represented by Dennis Goh; Solah, the RTD DG and government were represented by senior federal counsel Normastura Ayub; Tengku Azman was represented by Emelia Iszeham; and lawyer Zulaikha Fardi appeared for MY EG.
The matter came up before Justice Yeoh Wee Siam yesterday and she fixed Oct 23 for further case management.
The driving schools are members of Malaysian Driving Institutes Association (PIMA).
The driving schools named former RTD director-general Solah Mat Hassan, Umno Youth city affairs secretariat chairperson Tengku Azman Tengku Zainol Abidin, MY EG Services Sdn Bhd, the RTD director-general and government as defendants in the suit filed in August.
In their statement of claim, the 10 driving schools said the BL1M program was initiated by the Umno Youth secretariat, where MY EG is required to manage and administer the programme by collecting the RM199 fee from each learner driver.
Driving schools which have more than 300 people will receive RM130 each, while those having fewer than 300 will be paid RM150 each.
The remainder is the administration and exam fees which will be held by MY EG. The company and Umno Youth will be tasked with bringing the students to the driving schools.
‘Driving schools not consulted and threatened’
While Najib launched BL1M in Alor Setar, they were not consulted nor had agree to its participation in the programme and have expressed their protest individually or through PIMA.
PIMA had recorded its strong protest of the BL1M programme to Najib via letters dated Jan 29, Feb 28 and a memorandum dated March 4, 2013.
The driving schools alleged that the defendants had unlawfully conspired to affect their economic livelihood.
On March 11, a meeting was held between Solah and his deputy Ismail Ahmad (who later rose to become RTD DG) and PIMA, where Solah had allegedly threatened that any driving schools which do not accept the BL1M programme would be suspended.
Another meeting was held two days later where Solah said the RTD had to intervene although it is not a programme by the Federal government and that BL1M would be implemented with or without the driving schools’ agreement.
They claimed the defendants knew the shortfall in the payment of between RM130 to RM150 each compared to RM261 that was agreed previously. The plaintiffs claimed that neither MY EG nor Tengku Azman have any permit to operate driving schools.
Through their alleged bad intention, the BL1M programme was implemented despite the protests.
As a result of this, the 10 driving schools claimed they suffered losses and aggravated damages in the form of drastic reduction of the fees and income of the companies.
They further claimed that the RTD director-general had violated his statutory duty in not preventing the Umno Youth secretariat from conducting the programme and this allegedly resulted in discrimination to the plaintiffs.
The driving schools further alleged that in a meeting with Ismail on April 19, he pledged to resolve the issue with MY EG, but to no avail.
Prayers sought
Besides seeking BL1M to be declared unlawful, they are also seeking an injunction on Tengku Azman and MY EG from conducting the programme.
They also want general damages to be assessed by the court, and other relief given by the court.
The plaintiffs were represented by Dennis Goh; Solah, the RTD DG and government were represented by senior federal counsel Normastura Ayub; Tengku Azman was represented by Emelia Iszeham; and lawyer Zulaikha Fardi appeared for MY EG.
The matter came up before Justice Yeoh Wee Siam yesterday and she fixed Oct 23 for further case management.
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