Thursday, July 03, 2008

Highway concessionaires continues sodomising M'sian public

We are still being screwed by the highway concessionaires, with the complicity of the BN govt, of course.

Government compensates concessionaires RM2.97b - The Edge

The government has paid RM2.97 billion in compensation to four highway concessionaires — PLUS Expressways Bhd, Lingkaran Trans Kota Holdings Bhd (Litrak), Kesas Sdn Bhd and MTD Capital Bhd — for delaying their toll rate increases, said Deputy Works Minister Datuk Yong Khoon Seng.

Meanwhile, M Kulasegaran (Ipoh Barat-DAP) asked the deputy minister why the government refused to reveal the terms of the concession agreements to the public.

[The Deputy minister] said the government had been providing information on the matter in the past few years and stressed that the government was not negligent in having to pay compensation to the concessionaires as there were such provisions in the agreements.
But why are these provisions for profit guarantees there in the first place? How did the govt come to the conclusion that unfettered profit guarantees given to private concessionaires makes better economic sense than the govt building the highways itself? Isn't it just a convenient way to make sure that certain cronies get to make unreasonable profits off the public in perpetuity?

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