PKR MP questions S'gor parking deal legality, PJ groups want it scrapped

Summary

• PKR MP William Leong questions the legality of Selangor’s plan to privatise street parking in four local councils and the rationale of rewarding inefficiency with privatisation.

• Leong argues that public revenue should serve residents, not private profits.

• PJ Sejahtera and Persatuan Petaling Jaya Lestari call for the deal to be scrapped, demanding transparency on the vendor selection and a public inquiry into the 10-year concession.

PKR lawmaker William Leong has joined the chorus of voices expressing concerns over the Selangor government’s plan to privatise street parking operations in four local authorities.

He also said that the plan raises questions on legality, particularly whether the local council has the legal power to give away 50 percent of revenue to the appointed private company, Rantaian Mesra Sdn Bhd.

The Selayang MP noted that the reason given for the privatisation exercise was the current poor parking revenue of about 30 percent and lax enforcement resulting in double parking.

As such, he asserted that the move, set to come into effect on Aug 1, translates to a failure to hold public staffers accountable.

“One would think that the obvious solution to poor performance in collection and enforcement is to improve the competence, skills, and capabilities of the personnel involved and if necessary, to change them for more competent staff.

“By pursuing a privatisation scheme, the effect is to acknowledge the incompetence of the present staff as being beyond redemption.

“However, these incompetent staff are rewarded by keeping their jobs and salaries without having to do any work, while the local council loses half of its revenue,” Leong (above) said in a statement today.

State Local Government and Tourism Committee chairperson Ng Suee Lim previously said the concessionaire will handle both fee collection and enforcement, with the revenue to be split equally.

The concessionaire will receive 50 percent, while the remaining half will go to the state - 40 percent to the councils and 10 percent to Menteri Besar Selangor (Incorporated) (MBI Selangor).

Leong stressed that the revenue collected is meant for the well-being of residents, not to allow private entities to make profits.

“The privatisation of enforcement powers for offences cannot be made a source of income, which brings with it the dangers of abuse and corruption,” he said.

Jurisdiction

Leong also questioned whether the privatisation scheme was done with the agreement of the Transport Ministry and whether such privatisation of public car parks is allowed under the Road Transport Act (RTA) 1987.

He highlighted that public car park lots are under the jurisdiction of the Transport Ministry, with the local councils tasked with managing and collecting the parking fees by agreement with the minister under Section 72 of the RTA.

“There is no provision in the gazette orders to allow the local council to privatise the car parking management and collection of parking fees,” he said.

Veteran journalist R Nadeswaran had previously revealed that Rantaian Mesra is a fully owned subsidiary of MBI Selangor, with its principal activities listed as “engaged in the business of advertising and consultant services”.

He also recommended that the privatisation scheme be deferred pending a formal inquiry by the Selangor Special Select Committee on Competence, Accountability, and Transparency (Selcat).

The parking operations privatisation involves the Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA), and Selayang Municipal Council (MPS).

Realease documents

Two Petaling Jaya groups urged the state government to immediately scrap the plan, cautioning that the 10-year deal could drain millions from local council funds, undermine local authority and erode public trust.

The groups also called on the state government to release the vendor selection process and associated procurement documents, including the final contract.

Seeking a public enquiry to determine how the privatisation deal came about, the groups insisted that the issue also relates to respecting local government authority and ensuring responsible and transparent management of resources and finances.

The groups, eco-sustainability NGO Persatuan Petaling Jaya Lestari and PJ Sejahtera, a coalition of residents’ associations and civil society organisations, detailed their grievances in a joint statement today.

The statement referenced concerns previously raised by Nadeswaran, Muda, Petaling Jaya MP Lee Chean Chung and former Selangor assemblyperson Ronnie Liu.

COMMENT | Selangor's parking deal stinks to high heaven

Muda sounds alarm over Selangor parking privatisation plan

New company to manage parking collection in 4 S'gor local councils