PAC irate that names of ministers, firms still redacted in AES report

The Public Accounts Committee (PAC) has ticked off the Prime Minister's Department for not declassifying a report on the procurement and management of the road traffic automatic enforcement system (AES).

Instead of fully declassifying the 2019 report, as recommended by the committee last year, several names are still censored, said PAC chairperson Wong Kah Woh.

This includes names of certain ministers and companies, he said.

“It is ridiculous that the names of companies involved, Beta Tegap Sdn Bhd and Ates Sdn Bhd, which are already public knowledge, as well as the names of ministers are redacted.”

The report was the result of an investigation conducted by the Prime Minister’s Department (PMD)’s Investigating Committee on Governance, Procurement, and Finance of the Government (JKSTUPKK).

Wong (above) said the failure to fully declassify the report shows the PMD’s “lackadaisical attitude” towards Parliament and the PAC.

An AES speed trap camera

The call to declassify the report was made on Nov 21 last year but this was still not done even when a follow-up proceeding happened in March this year, he added.

A strong reminder was then made for the report to be fully declassified but to date, parts of the report are still redacted.

Investigator: AES a conspiracy to cheat Malaysia

The AES project came under public scrutiny following an outcry over its automated speed cameras.

The PAC last year found that the privatisation of the AES was unjustified and led to a government bailout of the two concessionaires.

The Armed Forces Fund (LTAT) was instructed by the government to take over the two concessions at a cost of RM555 million but audit firm KPMG valued the projects at a maximum of RM251 million.

Ates Sdn Bhd received RM295 million while Beta Tegap Sdn Bhd received RM260 million.

By December 2020, 45 speed cameras were installed nationwide.

However, LTAT told The Edge the sum paid to the concessionaires was based on returns from the 13-year concession period.

Ates’ original directors included Chee Chwee Cheong, reported to be an associate of Omar Mustapha Ong, a former aide to ex-prime minister Najib Abdul Razak.

Beta Tegap's then shareholders were reportedly politically-linked individuals Andreas Teoh and Rozana Redzuan.

“The MACC must review and investigate the recurring issues in the investigation’s report, and especially this PAC report, on whether any individuals were involved in receiving kickbacks in the AES takeover process by LTAT,” the PAC said in its recommendation last November.

In proceedings by the JKSTUPKK in November 2020, investigator Mohd Tap Salleh said, by right, the Road and Transport Department should have carried out the project.

"But when you fast forward, you know there is going to be a lot of money to be made. I think this is - I do not believe in conspiracy theory, but this is to conspire to cheat Malaysia, actually," Mohd Tap was quoted as saying.

He also said the committee believes there might have been kickbacks involved in the procurement of the project.

The investigative report was also submitted to the MACC in 2018.

During the PAC proceeding in 2020, the MACC said the matter was "still under investigation". - Mkini