Penang MCA: Why was RM6 mil arrears discovered only now?

State MCA’s Tan Eng Hin wants executive councillor Chow Kon Yeow to explain the Penang government’s action to recover outstanding debt from MBPP’s parking operator.

GEORGE TOWN: Penang MCA wants the state government to explain why it has only just “discovered” that parking operator Perkhidmatan Alam Indah Sdn Bhd has not paid rental arrears, amounting to RM6 million, over the last three years.

Its public services and complaints bureau deputy chief Tan Eng Hin claimed that the state had been very lenient to the company which was appointed to manage Penang Island City Council’s (MBPP) public parking management system.

“The Penang state government has no monitoring and checking mechanism at all. And it is ‘sleeping’ while signing such an agreement with contractors,” he said.

He said state local government, traffic management and flood mitigation committee chairman Chow Kon Yeow must explain how the MBPP had allowed such a situation to take place.

“He should tell what action will be taken against the company to recover the outstanding debt,” Tan said in a press conference here today.

On Jan 17, Alam Indah obtained an injunction from the Penang High Court against the MBPP’s move to terminate its appointment two days earlier.

City mayor Maimunah Mohd Sharif said on Jan 16 that the company’s services were ended because it had failed to settle the RM6 million in arrears.

Alam Indah had been appointed by MBPP in January 2014 and its contract was to run until May this year.

Tan asked Chow to explain any shortcomings in the contract following the parking operator’s success in securing the injunction.

He said with the court’s ruling, Alam Indah’s agents would continue selling parking coupons issued by the company while MBPP needed to stop selling coupons it had issued by itself.

“This makes Penangites laugh their heads off,” Tan said.

“Does this mean that when a state government agency signs a contract, it does not understand the terms and conditions of the agreement, leading to what has happened today?” he said. -FMT