Putrajaya to pay up to RM1 billion for failed traffic enforcement system

By admin-s On Feb 4, 2015

(TMI) – Putrajaya is close to finalising a settlement package with Beta Tegap Sdn Bhd and Automated Traffic Enforcement System (ATES) Sdn Bhd, having abruptly taken over the controversial automated enforcement system (AES) from the two private operators some two years ago.

The settlement with these two companies could cost Putrajaya a hefty sum, as much as RM500 million each, said a source close to the matter.

The AES was supposed to be launched nationwide in September 2012, but Putrajaya backtracked on its push to get the automated traffic enforcement system off the ground due to resistance from opposition and Barisan Nasional members of parliament

Beta Tegap and ATES, operators for the AES, have taken their case to be settled at the Kuala Lumpur Regional Centre for Arbitration (KLRCA), after Putrajaya backtracked on its contract with the two companies.

The case that has been under arbitration for more than two years now is due for hearing within the next two weeks.

When contacted, Treasury Secretary-General Tan Sri Mohd Irwan Serigar Abdullah told The Edge Financial Daily that the matter will be settled soon.

“I cannot elaborate [on the settlement package] as the negotiations are ongoing,” he said.

Another source close to the matter said Putrajaya and the two companies were working out a settlement and it needed to be kept under wraps until it was completed. Otherwise, the deal could unravel.