Guan Eng: For cronies' sake, stop lying about toll hikes

Penang Chief Minister Lim Guan Eng has urged the federal government to “stop lying” that highway contracts cannot be re-negotiated to stop the hike in toll rates.

Lim ( left ) recalled how BN "successfully renegotiated" such contracts In 2010 to forestall toll increases in view of the 2013 general election.

He said barely three years ago on Oct 15, 2010, Prime Minister Najib Abdul Razak announced a five-year cap on toll rates for the North-South Expressway and four other associated expressways when tabling the 2011 Budget in the Dewan Rakyat.

"The BN government then claimed success in renegotiating a new deal with PLUS so that a five-year freeze on toll increase was put in place," Lim said in a statement.

"For this reason, BN should not lie that highway contracts cannot be renegotiated to stop toll rates hike for companies that have recouped their investment or construction cost when it has successfully renegotiated such contracts in 2010," he added.

Lim said that beyond 2015 when the moratorium period expires, toll increases will be fixed at a “milder” 5 percent every three years as opposed to the original 10 percent.

He added that it is learnt that PLUS will also waive RM6.2 billion of compensation claims against the government.

Lim said the 2010 five-year moratorium showed that the government could do a lot more by renegotiating a more acceptable deal for the rakyat rather than succumbing to the "insatiable greed of cronies for excessive profits".

He was referring to the government's toll rate hike announcement following reports of an increase in electricity tariff.

The toll hike, which involves 13 highways, will come into effect next year.

"The double-standard of the BN government recycles itself in being able to afford to pay RM400 million in compensation for not increasing toll charges before the general election but not being able to afford to pay RM400 million once the election is over," Lim said.

"Despite signing the contract, the BN government can still escape from the unfair terms by renegotiating a new contract," he added.