Should the government go through with plans for the Employees Provident Fund (EPF) to acquire Plus Expressways Bhd, it would be akin to "robbing Peter to pay Paul", decried Petaling Jaya Utara MP Tony Pua.

NONE Pua ( left ) argued that while EPF's main task is to ensure fund contributors receive dividends, Plus was "sucking" ordinary citizens who are paying high toll rates due to lopsided highway concessions.

"This is not the way for EPF to generate returns for the people. The government might as well just create more highways with unfair contracts and let EPF manage them.

"This way, EPF can (make big profits) and provide good returns to (fund contributors)," said Pua, during a press conference at the Parliament lobby.

Pua argued that if the government was serious in putting the people's interest first, the sale of Plus should be sold through an open bidding process and a new concession agreement must be drawn.

"Put in targets. For example, toll rates must be frozen, toll concession period should last maybe ten years and allow open bidding to see which party would pay the highest," he said.

Pua was responding to news reports that EPF was the frontrunner among five proposals to buy the controlling stake of Plus. Two other bidders are MMC Corp Bhd and Asas Serba Sdn Bhd.

Hefty government compensation

Pua said that the problem now is a lopsided concession agreement received by Plus, which will last until 2038, which has made it "the most lucrative" highway operator in the country.

plus highway 181108 He argued that since Plus makes between RM1.2 billion to RM1.5 billion annually, it is a massive cash cow and the concession agreement allows it to increase rates every three years, failing which, it would be compensated by the government.

"Government compensation to Plus last year was RM850 million. This is a contract that will last until 2038. It is an unfair contract," said Pua.

Trading of Plus shares were suspended this morning pending an announcement by Finance Minister Najib Abdul Razak tomorrow during his Budget 2011 speech.

The government is under public pressure to suppress toll prices, in which scheduled increases are stipulated in concession agreements that are never awarded through open tenders.

Opponents to this practice claims said that this lacks transparency and scheduled rate increases does not take into account of externalities.

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