As the Federal Government’s takeover of the once-controversla Automated Enforcement System (AES) and all its traffic monitoring cameras is close to being finalised, Putrajaya might have to fork out a ginormous RM1 billion to pay off the contractors.
A source close to the matter told The Malaysian Insider that Putrajaya might have to pay Beta Tegap Sdn Bhd and Automated Traffic Enforcement System (ATES) Sdn Bhd RM500 each to take control over the AES infrastructure.
The AES was scheduled to have rolled out in September 2012, but the Federal Government was forced to put the new system on the backburner after intense resistance from the Pakatan Rakyat opposition and even a few Barisan Nasional politicians.
Beta Tegap and ATES, who were given the contract to operate the AES for the government, then took their case to the Kuala Lumpur Regional Centre for Arbitration (KLRCA) after their contract terms with Putrajaya were not met.
The two contractors were to operate the AES for a concession period of five years, after which operations would be transferred to the Road Transport Department.
After the public hue and cry over two private companies handling – and taking commissions from – traffic offences, then-acting Transport Minister Hishamuddin Hussein announced in 2013 that a wholly-owned government subsidiary, AES Solutions Sdn Bhd, would take over the operation of the AES.
Photo: The Star
