Foolish AES Agreement

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Transport Minister Anthony Loke today described the Automated Enforcement System (AES) agreement as one that “only a fool would sign.”

  • The RM435 million in unpaid AES summonses would not have benefited the government; it would have gone to two concessionaires 
  • The agreement with the concessionaires was so “lopsided” that they would easily get a profit and a return on their investments
  • Assets belonging to the companies were only 47 speed cameras, of which only 38 are operational
  • Cost of one camera about RM250,000, which meant the companies invested just over RM10 million, resulting in a handsome profit for them
  • The AES was implemented in 2012 when the transport ministry was helmed by MCA leaders Kong Cho Ha and subsequently Liow Tiong Lai

MCA Youth secretary-general Leong Kim Soon yesterday demanded Loke to issue an apology for allegedly making a “foolish” and “wrong” decision on the AES summonses.

He said the decision to write off all AES summonses was aimed at satisfying the public and to encourage motorists to break the law.

“MCA Youth wants me to apologise, I want to tell them that those who made the decision to sign the agreement were fools, not the ones who cancelled the agreement.


“I want to tell MCA leaders, please use your brain before you talk next time,” he said.

According to Loke, proceeds from the AES summonses would go to the two concessionaires, Ates Sdn Bhd and Beta Tegap Sdn Bhd, and not the government.

“Even if we collect all the outstanding summonses, it will not become government funds,” Loke said in a press conference at the ministry’s office.

“It will be paid to the two AES concessionaires. It was a very lopsided deal that mostly benefited the two companies which was why the government decided to cancel it.

“We also disagree that enforcement was privatised. This was why some people weren’t happy and took the matter took court. This is why we decided on cancelling the AES, six years since it was left unresolved.”

Loke said since the agreement was signed in 2012, almost RM129 million was paid to the two companies in two-tier payments.

“And after the summonses were reduced to RM150 from RM300, the whole amount went to the companies. The government never benefitted from this agreement,” he added.

In the first tier, an RM16 fee has to be paid to the concessionaires for each summons issued, even if the fine is never paid. In the second tier, 50% of the summonses paid have to be given to the concessionaires.

This agreement was signed when MCA’s Tan Sri Kong Cho Ha served as the transport minister.

“I am angry that such an agreement has been enforced. I can take criticism from those who don’t understand the agreement.  

“But not from the MCA as they are the biggest hypocrites,” he said.

Loke had announced last week that the government would cancel 3.1 million unpaid summonses issued under the privatised system, with a combined value of RM435 million in potential fines.

He also said the Road Transport Department would take over and operate AES and warned motorists that there will be no repeat of the write-off from September 1 onwards.

Reacting to the outrage by the National Patriots Association (Patriot) over the use of Armed Forces Board Fund (LTAT) by the previous government to pay RM555 million to the two companies to take over the AES, Loke revealed the original shareholders of the company.

The shareholders for ATES Sdn Bhd, Traffen Force Sdn Bhd and Commercial Circle (Malaysia) Sdn Bhd For Bata Tegap Sdn Bhd, were Dr Andreas Teoh, Datuk Mohd Yunos Othman, Rozana Redzuan, Gen Tan Sri Nik Ismail Nik Mohamed and Datin Yap Kim See.

Earlier report: Aug 17, All AES Summonses Cancelled, Strict Enforcement from Sept 1