VIDEO l 2:00 min

The Selangor government will use its position as shareholders in three highway companies in Selangor to halt the planned toll hike.

NONE According to Selangor economic adviser Anwar Ibrahim ( left ), Selangor Menteri Besar Abdul Khalid Ibrahim has agreed to do so by issuing a directive to government representatives in the highway concessionaires not to support the toll rate increases.

The highways concerned are the Shah Alam Expressway (Kesas), Damansara-Puchong Expressway (LDP) and the Western Kuala Lumpur Traffic Dispersal System (Sprint).

"We are sending a message to the federal government that it can do the same with its government-linked companies (GLCs) that own shares in the highway concession companies.

"If the Selangor government can choose to forego bigger profits (to its GLCs by blocking toll hikes), then the federal government can do so, too," Anwar told reporters today.

The state holds 30 percent of the Kesas concessionaire through its investment arm Selangor State Development Corporation (PKNS), and 20 percent of the Sprint and LDP concessionaire via state-owned Kumpulan Perangsang Selangor.

Strict terms for three new highways

On top of blocking toll hikes for the three highways, Selangor will also impose strict terms for three other highways being built - the Damansara-Shah Alam Highway (Dash), the Kinrara-Damansara Expressway (Kidex), Sungai Besi-Ulu Kelang Elevated Expressway (Suke) and the Kuala Lumpur Outer Ring Road (Klorr).

The terms are:

  • Approval to build will only be given if the federal government and the concessionaires arrive at a profit formula that is fairer to the rakyat; and
  • Take-over of land and related administration matters will only be allowed if a fair toll rate is set and there is accountability to the Selangor people.

Referring to a statement made by Minister in the Prime Minister’s Department Abdul Wahid Omar, Anwar said the government cannot simply use the clause prompting it to pay compensation for not allowing toll hike as an excuse.

the toll operators and concession period 141206

He said there are numerous other provisions that sided with the concessionaires, which the government could use to its advantage and stop the toll hikes by leaning on concessionaires in the people’s favour.

NONE He said that this was successfully done by the Finance Ministry and Treasury officers from 1994 to 1998, despite pressures from “ministers representing concessionaires and the concessionaires themselves” to raise toll rates.

Elaborating, PKR director of strategy Rafizi Ramli, who was also at the press conference at the PKR headquarters, said these provisions include subsidies and grants provided for the construction of the highways.

“For example, the Maju Expressway (concessionaire) received a government grant of RM967 million to construct the RM1.5 billion highway...

“We gave them RM900 million here, et cetera, and so now if they want to talk about the provision to raise tolls, (we can say) pay back the RM900 million,” Rafizi said.

The government, he said, cannot say that it will hit legal strife if it does not honour the concession agreement, since the shareholders in the concessionaires are government-linked companies.

“It is left pocket to right pocket. The shareholders include Permodalan Nasional Bhd, Khazanah Nasional Bhd. Will they sue the government?

NONE “As shareholders and the government can work out an agreement where the toll hike is forfeited as the profits are sufficient.

“The issue of being sued does not arise. How can a government entity sue the government? This can only happen with the crazy BN government,” Rafizi said.

Works Minister Fadillah Yusuf ( left ) has confirmed that toll rates at 15 highways will go up by 50 sen to RM2 on Jan 1, but the exact quantum has not been fixed.

Abdul Wahid, meanwhile, has come under fire for saying that the people have the choice of using trunk roads if they do not want to pay higher tolls.