Tuesday, June 01, 2010

Asas Serba's RM50 Billion Dream

It is outrageous that the RM50 billion offer to acquire all tolled highways in Malaysia by a company with absolutely zero track record in managing or operating highways has been able to maintain a perception that their proposal is being considered by the government to the extent that it seems able to present their proposal directly to the cabinet as reported by The Malaysian Insider.

If true, then it clearly shows that “patronage” is alive and kicking for vested interest parties continues to have improper access to the Cabinet or key decision makers of the government.

The Cabinet must on Wednesday reject outright the proposal by Asas Serba as there is no basis for it to be even considered or entertained in the first place.

Should the Cabinet decide that they intend to consider any offer to restructure all tolled highways in Malaysia, then a policy decision must be made to explore the possibility as the way forward and the opportunity to bid for all the tolled highways must be opened to all competent parties. It is only through such an open, transparent and competitive system can the Government obtain the best offer for both the Government and the rakyat.

The entire premise of economic policy reform as highlighted in the Prime Minister's New Economic Model is the fact that the Government does not know best, as well as the critical need to promote competition and transparency. For the Cabinet to specifically consdier the unsolicited proposal by Asas Serba will fly in the face of the “New Economic Model”.

As it stands the New Economic Model is already failing its credibility test with the Barisan Nasional government continuing to award projects, contracts and concession without any form tender or competition. Government land such as the Sungai Besi Air Base, the Rubber Research Institute land in Sungai Buloh and a 62.5 acres piece of prime land off Jalan Duta has been awarded directly without any form of tender. Projects such as the RM682 million Matrade Exhibition and Convention Centre and the RM8 billion purchase of armoured-wheeled vehicles continue to be awarded directly without competition. And most recently, Tan Sri Vincent Tan's personal vehicle, Ascot Sports was given the sports betting license in a most opaque fashion allowing Tan Sri Vincent Tan to immediately benefit RM525 million upon the sale of his shares to Berjaya Group.

Should the Asas Serba proposal receive any form of backing from the Cabinet, whether tacit or otherwise, the it'll only serve to prove beyond doubt that the New Economic Model which Datuk Seri Najib Abdul Razak is promoting is nothing but a sham.

We continue to call upon the Government to study DAP's proposal to buy-back the key tolled highways such as PLUS Expressways and Lebuhraya Damansara-Puchong (LDP) which are making astronomical profits should these concessions be unwilling to substantially reduce their toll rates. We have made the necessary calculations that even at current toll rates, if maintained for a period of 5 to 8 years after the buy-back will pay off the purchase cost. Hence the Government must seriously consider this option as it will not cost the Government a single cent while there will be tremendous benefits to the rakyat who are suffering from paying the high cost of toll over an extended period of time.

12 comments:

Anonymous said...

I have a suggestion of how to debate Donald 'We-are-better-off-than Burma' Lim.

You say you give up. You don't know how to talk to a Cartoon character. and ask him clarify if he is his name sake (Donald Duck) or his look a like (Elmer Fudd)..

mut said...

Many are still unaware of the nature of DAP's proposal as they do not have internet access. Maybe DAP and its PR's partners should go about publicising this approach a second time. Use BM as well, not only Mandarin and English.

Anonymous said...

And yes NO SUBSIDY CUTS!

AND I AM JUST WAITING FOR PAKATAN RAKYAT TO TAKEOVER AND PROBABLY YOU BE M.O.F.!

Charlie Cluster said...

Dear Sir,

A lot of people realized the possible outcome if Asas Serba took over all the toll highways. We're all too tired sending the same message to the government simply because they're way up there and so very hard to get their attention. I already feel like giving up and will probably move out of Malaysia. But before I do that, I will cast my last vote to you!

Lee Wee Tak said...

I have written at length about this a month ago.....

http://wangsamajuformalaysia.blogspot.com/2010/05/rm50-billion-question-on-toll-highway.html

The tone of Asas Serba in Utusan was
'berikan kita peluang' sound more like a plead than a genuine confident businessman

anyway Mahathir's privatisation policy runs contrary to original idea of lowering cost, increasing efficiency and service level

this RM50 billion is meant for BN administration to sell off a cash generating asset to get immediate cash injection for watever they gonna be reported in the AG report while Asas is given an indefinity and uncontrolled and unlegislated freedom to levy toll to the tax payers under their own frolic and desire

if BN can't get GST thro, they gotta have other means....a simple tactical move

KoSong Cafe said...

It all started with one-sided agreements favouring the concessionaires, and I wonder why the leaders responsible could get away with impunity.

There were breaches of fiduciary duties, to state the least, being entrusted with the power to negotiate and sign the agreements on behalf of the government.

Just imagine, the concessionaires were guaranteed profits - either in the form of toll increases or compensations. Can we be blamed for having the perception that some people benefited and are still benefiting from such contracts?

We now have a company, rumoured to be linked to previous cronies (with one who was bailed out with public funds), and if true, having another bite (a bigger one) of the same cherry?

We have had cases of privatizations which failed and were bailed out with public funds, why are we such suckers to sweet deals which may not hold its course?

I still think Tony Pua's proposal is best in terms of fairness.

Hopefully, we are getting to the stage when people are now better informed, any further arrogance in implementations without listening to the people will lead to their way out of power in the next general elections.

Some people are already having the perception that the present leadership is bent on squandering the nation's wealth before defeat, much like creating poison apple to thwart a take-over attempt of a company.

Anonymous said...

You guys should check out this blog on Asas Serba, http://asasserbawatch.wordpress.com/

theres some really good info there! I think it is our collective responsibility to ensure that the plan does not work out.

donplaypuks® said...

TB

You should emphasize in Parliament that if AS can come up with a $50 billion solution to reduce the burden of tolls, then Parliament can come up with a cheaper solution!!

Samy Velu lied to us that it would cost "hundreds of billions of $" to do it to protect his croney biz friend. He didn't/does not care two hoots about the Rakyat!!

Remember that Khazanah, PNB and EPF own 84% of PLUS, so it's a no-brainer to restructure that. The smaller tollcos - Govt does not have to buy 100%, ony under 33 1/3 % for equity and management control to re-structure toll rates and concession periods!!

dpp
we are all of 1 race, the Human race

donplaypuks® said...

YB

You should also ask the Govt to disclose the % equity shares Khazanah, PMB, EPF, Valuecap, Mavcap, 1MDB, Telekom, Tenaga, Petronas etc., own in each of the 23 tollcos, so we can judger how much it will really cost for it to tale euqity AND management in them.

dpp
we are all of 1 race, the Human Race

Anonymous said...

I am serious. The isp is censoring the internet. Why isnt anyone doing anything.

Try: www.playboy.com

Is there filtering?

What next?

Anonymous said...

Here's an interesting link, worth a look! I think the govt should really think about the highways and have a concrete plan of action.

Asas Serba Watch

Anonymous said...

Hopetech Sdn Bhd had been appointed by the government to implement Central Tolling Agency using Multi-Lane Free Flow.

Who are they ? part of Serba ?