MB: Concession firm directors have final say on toll hikes
The Selangor government has instructed state-linked companies, such as the Selangor State Development Corporation (PKNS), which holds minority shares in several toll concessionaires, to oppose the slew of toll hikes scheduled for early next year.
The Selangor government has instructed state-linked companies, such as the Selangor State Development Corporation (PKNS), which holds minority shares in several toll concessionaires, to oppose the slew of toll hikes scheduled for early next year.
However, Selangor Menteri Besar Khalid Ibrahim (
left in photo
), admitted that the final decision would be in the hands of the board of directors of the respective highway concession companies, not within the powers of the state authority.
"We have directed the board members who represent PKNS in the concession companies to make several suggestions to the highway concessionaires not to increase toll charges in order to protect the welfare of the people," he said after chairing the weekly state executive council meeting today.
"We hope this matter can be discussed at the board meetings of the companies," he added.
The state holds minor shares in concessionaires operating three highways - the Shah Alam Highway (Kesas), Damansara-Puchong Highway (LDP) and the Western Kuala Lumpur Traffic Dispersal System (Sprint).
'State will try its best for the people'
The state holds 30 percent of the Kesas concessionaire through PKNS, and 20 percent of both the Sprint and LDP concessionaires via Kumpulan Perangsang.
Khalid said that although they do not possess the majority power, the state was responsible and would try their best to fulfil their obligation to the people.
“I am sure the majority of the shareholders will think of the cash flow and not this… but nevertheless, the state government has a responsibility to the people,” he said.
He also said that PKNS had obtained a healthy return on its investments in the toll concession companies.
“We feel that the returns to PKNS are good enough and do not have to be increased through toll hikes.
“We do not have to take advantage to reap more profits just because the federal government failed to ensure a good cash flow,” Khalid added.
Earlier today, the state’s economic adviser Anwar Ibrahim ( right ) said Khalid had agreed to instruct the state representatives in the concession companies to object to the toll increase.
“We want to send out a message to the federal government that it can do the same with the government-linked companies that hold shares in highway concession companies,” Anwar said.
Yesterday, it was reported that 13 highways, mostly around Kuala Lumpur, would raise the toll rates by between 50 sen and RM2, from Jan 1.
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