Parti Sosialis Malaysia (PSM) has pressed the Selangor government to disclose financial details related to the state administration’s initiative on privatising street parking.
PSM central committee member Gandipan Nantha Gopalan noted that to date, there have been no transparent disclosures of revenue projections, profit estimates, payback periods, or profit margins for the concessionaire involved in the Selangor Intelligent Parking (SIP) scheme.
“Without disclosures of these basic figures, the public has no basis to assess whether the 50 percent revenue share allocated to the private company is reasonable or merely benefits a select few,” Gandipan said in a statement today.
Under the SIP initiative, local councils are compelled to share revenue from parking fees, monthly passes, two-hour zones, and compounds in a 50-40 percent split with a concessionaire.
The remaining 10 percent is intended to go to Rantaian Mesra Sdn Bhd, a wholly owned unit of Menteri Besar Selangor (Incorporated) tasked with overseeing the SIP rollout.
State executive councillor Ng Suee Lim previously said the concessionaire will invest RM200 million for the SIP, with the funds covering, among others, the installation of 1,800 CCTVs in four local councils involved in the first phase of the scheme.
To date, Selmax Sdn Bhd, a subsidiary of Itmax System Bhd, has secured three concessions to manage the SIP system for the Shah Alam City Council (MBSA), the Subang Jaya City Council (MBSJ), and the Selayang Municipal Council (MPS).
The Petaling Jaya City Council (MBPJ) remains the only local council under the current phase of the SIP which remains outside the arrangement with Selmax, with The Star yesterday quoting MBPJ councillor Terence Tan Teck Seng as confirming that the council is still reviewing legal and financial particulars of the deal.
Lack of clear explanations
Reiterating concerns on the privatisation of street parking operations, Gandipan today asserted that there is a lack of clear explanations regarding plans for technology and knowledge transfer to local councils.
“If technology is the primary justification for privatisation, will council staff be trained and empowered to eventually take over operations, or are we instead creating long-term dependence on private operators?
“If the issue lies with technology and systems, why did the state government not explore a cooperative model among several local councils to jointly invest in technology, operating systems and training?” he questioned.
He stressed that such an approach would not only retain public ownership but also build long-term capacity without sacrificing revenue to private parties.
Echoing calls for the privatisation scheme to be deferred pending a formal inquiry by the Selangor Special Select Committee on Competence, Accountability, and Transparency (Selcat), Gandipan also criticised the state government’s response to reports on links between the royal family and Selmax.
“The state government claims that the appointment of Selmax was made without regard to ownership background, including links to royalty. This claim is difficult for the public to accept.
“Whether the state government knew (of the link) but did not disclose (the matter), or did not know due to weak due diligence, both reflect a serious failure of governance,” he added.
Royal links
On Nov 17, Malaysiakini reported that the Raja Muda of Selangor, Tengku Amir Shah, holds a 16.5 percent beneficial stake in Selmax via two other holding companies: Tanah Perwira Sdn Bhd and Greyscale Holdings Sdn Bhd.
Incorporated in March last year, Tanah Perwira, a minority shareholder of Selmax, is wholly owned by Greyscale Holdings, a three-year-old company in which Tengku Amir Shah owns a majority 55 percent slice.
While no financial information for Selmax was disclosed in the Companies Commission (SSM) documents sighted by Malaysiakini, both Tanah Perwira and Greyscale appeared to be operating at a loss.
In response to the report, graft watchdog C4 Center had criticised the state government’s apparent lack of transparency in the SIP initiative, warning that the involvement of royalty figures must trigger enhanced due diligence and disclosure mechanisms.
PKR lawmaker Lee Chean Chung had also urged the state government to issue an official explanation on the matter, stressing that the clarification is necessary to ensure that no party, including the royal institution, is subjected to “unnecessary assumptions”.
A few days after Malaysiakini’s initial report, Selangor Menteri Besar Amirudin Shari said royal ties do not preclude a private company from doing business or managing services for the state government.
Amirudin also said he has no problems declassifying documents related to the deal, noting, however, that such efforts might be “tricky” as the private company might be against the move. - Mkini
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