Kong rubbishes claims that AES providers can sue Govt over profits

KUALA LUMPUR: Transport Minister Datuk Seri Kong Cho Ha has rubbished claims that the two companies providing the Automated Enforcement System (AES) could counter-sue the Government if they did not receive sufficient profits from the summonses.

"These are all lies. There is no such clause for that (in their contract with the Government to provide the AES)," he told reporters when met at the Parliament lobby here Wednesday.

Kong also said the ministry was not considering to declassify the details of the contract to silence detractors of the AES.

"The financial model for the two companies, as AES service providers, does not result in them earning an overly large amount of profit," he said.

Kong's deputy Datuk Abdul Rahim Bakri said the contract was confidential and drafted by the Attorney-General.

Abdul Rahim also defended the AES, saying it was a well-thought out initiative which started since 2003 and underwent an open tender system in 2007.

Kong and Abdul Rahim were responding to calls from the Opposition to declassify the agreement made between the Government and AES service providers ATES Sdn Bhd and Beta Tegap Sdn Bhd.

It was reported that the two companies were entitled to RM16 per valid summons for the first five million issued, and would share the remaining profit with the Government, up to a maximum of RM270mil for each company.

However, Kong said the companies will only each receive 7.5% of the remaining revenue.

To a question, Kong said the ministry had no plans to offer motorists discounts for summonses issued under the AES nor did it plan to defer the system's implementation.

Source From : The Star