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Nurul Izzah wants speed camera contract reviewed
By Teoh El Sen
PETALING JAYA: Lembah Pantai MP Nurul Izzah Anwar today urged the Transport Ministry to review an "unfair" decision it made to award two companies a multi-million-ringgit contract for a nationwide implementation of a speed camera system to catch traffic offenders.
FMT yesterday reported that local company Tess Capital Sdn Bhd claimed that it has been sidelined in the award of the RM700 million contract for the Automated Enforcement System (AES). The deal went to the two companies whose AES is based on foreign technology.
The AES is made up of cameras installed at accident-prone areas and traffic light junctions. The devices can detect speeding vehicles and those who beat the red light.
Tess Capital claimed that its AES, the product of its homegrown technology, is equal, if not better, than its competitors.
Its executive director Soh Joon Hang said he has lodged a report with the Malaysian Anti-Corruption Commission (MACC) to investigate what he claimed was the abuse of power and "manipulation" by Road Transport Department over the tender process in 2007.
Tess Capital was established in 2004 and later given an MSC (Multimedia Super Corridor) status a year later. Soh said his company was officially recognised as AES supplier by the New South Wales government after it had passed a stringent 18-month trial in 2008.
'Make dealings transparent'
Said Nurul Izzah: "I think Transport Minister Kong Cho Ha should seriously address this issue (awarding the contract) and find out how this could have taken place. This is wrong.”
She added that Tess Capital deserved to know why it was not chosen or least be treated fairly.
"It is hard enough to research and develop something locally with your own funds. If your own government doesn't support your initiative, it will eventually discourage other local companies
from developing their own technology," she said.
Nurul Izzah said it is widely known that the Transport Ministry has "always given priority” to certain companies, and urged for transparency in its dealings.
"One of the points in the 10th Malaysia Plan was to support innovation to spur economic growth.
In the last stimulus package, the government allocated RM10 billion for the Working Capital Guarantee Scheme and invariably the funds will be given to government-tendered projects -- meaning crony companies. But only RM150 million was set aside for the creation of innovative high-tech companies. Why?"
"If we are really supporting innovation, the ones in need of backing are companies like Tess Capital. I am glad that Tess Capital is brave enough to lodge a report with the MACC,” she said.
“But now we must ensure that the MACC will investigate this matter properly. Is the tender process in accordance with international standards?"
Nurul Izzah also questioned whether the ministry had taken into account Tess Capital's MSC status.
"What's the use of awarding that status if it doesn't help our local companies win a tender? The Science, Technology and Innovation Ministry has complained that many companies have not survived long; is this because of our government's attitude?"
Nurul Izzah said the Tess Capital case was only the tip of the iceberg, adding that the same problem also plagues all small and medium enterprises in the country.
"It (awarding contracts) is really skewed towards those 'special' companies,” she said.
“3 things Nurul Izzah wished she knew”
·Lembah Pantai MP Nurul Izzah Anwar may live to regret her outburst in Free Malaysia Today against the Transport Ministry in what she deems is an "unfair" decision to award two companies a multi-million-ringgit contract for a nationwide implementation of a speed camera system to catch traffic offenders.
·In the interview, Nurul decried that the evaluation exercise was skewed in favour of two foreign AES companies while backing Tess Capital with its so called ‘local technology’ which was superior.
·To give the esteemed MP the benefit of the doubt, she probably did not know that the MSC-status Tess Capital did not develop the ‘local technology’ it claimed to have. It acquired the technology and technical staff from a the defunct Australian company called Poltech which failed miserably in Australia before it was bought over by a Datuk Ding of Malaysia.
·A look into the 2003 archives of Australian Sydney Morning Herald showed that the Poltech-installed cameras which were still under warranty gave wildly inaccurate readings, leading to the Victorian government subsequently to suspend the issue of speeding fines.
·Newspaper reports in Australia’s The Age said that the exercise cost the Victoria state government AUD26 million in waived fees and paid compensation to irate motorists. The government also faced the possibility of legal action by motorists.
·Premier of Victoria State, Steve Bracks has said that the Poltech cameras’ performance unacceptable and was exploring “all legal options against Poltech International”.
·Poltech went into receivership in November 2003, owing AUD10 million.
·This is the legacy of the company which Tess Capital inherited and which the Lembah Pantai MP was staunchly defending.
·The MP was also probably ignorant that the evaluation exercise which took more than 5 years, saw two companies emerge as the top scorers which would eventually lead to their award of the contract. Tess Capital was not any one of the two.
·The results of these evaluations proved and verified findings all over the world.
·The top scorers were a German company and a U.S. company based in Australia.
·The Germany company is a world leader in the field of photographic traffic surveillance, with a history dating back to 1933 and is present in more than 60 countries.
·The other company is operates primarily in Australia and the United States of America, and was listed on the Australian Securities Exchange in January 1997. It is the largest and longest-established photo enforcement technology provider in the U.S. with more than 1,200 fully operational systems making a public safety impact in more than 240 communities in 21 states.
·Tess Capital’s executive director Soh Joon Hang said he has lodged a report with the Malaysian Anti-Corruption Commission (MACC) to investigate what he claimed was the abuse of power and "manipulation" by Road Transport Department over the tender process in 2007.
·If there was any hanky panky, perhaps the MACC should investigate if the Lembah Pantai MP was just ignorant or more dangerously, is actively involved in the lobbying for Tess Capital, which sounds more like a sore loser than a reputable company.
