Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Aug 23): The previous Barisan Nasional administration had proposed to take over the Automated Enforcement System (AES) project from the Armed Forces Fund Board (LTAT) in November last year, said LTAT’s ex-chairman Tan Sri Mohd Anwar Mohd Nor.

Further, the agreed takeover cost exceeds RM555 million, which is LTAT’s original cost of investment to take over the project from two private companies, he said.

In a statement today, Anwar pointed out that that the full agreed takeover price for the project by the BN government then, via the Ministry of Finance (MoF), was LTAT’s full investment costs, plus a “12% return per annum” for the two and a half years that LTAT owned it.

“If the Government decides to pay back only LTAT’s money used to acquire the two companies without paying back all other expenses spent to-date by LTAT on the project plus the 12% return per annum as agreed by the previous government upon the takeover of AES in November 2017, this would be quite unfair to LTAT and not in line with the Concession Agreement signed by the two parties,” he added.

In the statement, Anwar also confirmed that LTAT took over AES from private firms ATES Sdn Bhd and Beta Tegap Sdn Bhd in 2014 under an invitation from the government.

“In 2015, the Cabinet approved the proposed acquisition of the AES project by LTAT and in November 2016 the Cabinet approved a new financial model including a new fee structure for the AES project renamed AWAS,” said Anwar.

Later in in November 2017, MoF decided to take over the AES (AWAS) project from LTAT, said Anwar, “and to pay back all LTAT’s investment cost in the AES project plus 12% return per annum”.

Calling LTAT’s financial model in relation with the AES project as a “win-win” situation for all parties involved, Anwar said: “The flip-flopping of decisions on the AES project by the previous government should not impact the return to LTAT of an investment which was taken on with due commercial consideration.”

The AES project garnered spotlight after Transport Minister Anthony Loke questioned the previous Government’s decision to ask LTAT to take over the project from the two private companies for RM555 million in what he described as a lop-sided agreement.

The present Government is taking over the automatic speed-trap system beginning Sept 1, and Loke said the payment of RM555 million will be paid to LTAT in stages. There was no mention of the 12% annual return raised by LTAT’s Anwar today.

      Print
      Text Size
      Share