The North-South Expressway (NSE) concessionaire - Projek Lebuh Raya Utara Selatan (Plus) - has rejected the request to defer its toll hike scheduled for Jan 1 next year.

The request was made by the Committee Against Unfair Toll Increases (Cauti).

Cauti chairperson and DAP leader Teresa Kok said Plus told the committee that the company already obtained the approval from the government for the toll hike.

The Seputeh MP led the committee to send a memorandum to Plus at their office in Taman Desa, Kuala Lumpur, this morning.

They urged the concessionaire to defer the increment for two months until the government and Parliament conducts a thorough study of the issue.

The committee was received by Plus chairperson Mohd Sheriff Mohd Kassim and managing director Idrose Mohamed, and it was followed by a two-hour dialogue.

Apart from the deferment, the memorandum also questioned how Plus was 'secretly given a 50-year concession from an original 15-year concession offer in 1987 without any transparency and accountability to the Malaysian taxpayer'.

Contract extension?

Speaking at a press conference later, Kok said the top Plus executives also declined to furnish a copy of the agreement signed between the company and government.

"Plus told us that as a company, they have to be responsible to their shareholders," she added.

The DAP leader also expressed concern that the contract for Plus to collect toll will be extended followed by the company's upgrading of the NSE.

"Plus told us that if the road from Seremban to Ayer Keroh which always suffers massive congestions has to be widened by the company, then they have to increase the toll.

"Upgrading the road should be the government's responsibility, but now Plus has to do it. Does it mean the price of the toll will increase and the contract extended?" she asked.

She said Plus has widened the roads at Jelapang, Tanjong Malim and Rawang at a whopping cost of RM1 billion although this was not stated in the contract.

Burdens the poor

Malaysian Trades Union Congress (MTUC) secretary-general and Cauti deputy chairperson G Rajasekaran, who was also present, said the congress will support any moves against the toll hike.

"We didn't say that you can't increase the price totally. But why must it be 10 percent? It's not fair for us. Can't it be two or three percent?" he asked.

Cauti committee member Charles Santiago said the middle class and the poor will be burdened by the toll hike.

"The increase of 10 percent will increase the prices of food and transportation. This will be the major burden," he added.

Meanwhile, DAP Youth lodged a report with the Anti-Corruption Agency (ACA) in Ipoh, Perak, today, calling for a probe into the NSE contract.

"Was the contract opened for tender before it was granted to Plus? What's the criteria to determine Plus as the best company to handle the project?" Youth chief Nga Kor Ming stated in the report.

He said the public is in the dark over the identity of the government representatives who inked the contract with Plus.

"Is the high compensation given to Plus lawful? Who and how was Plus granted RM7.7 billion loan?" he added.

Plus responses

Later in the afternoon, Plus in a press statement said that the toll revision was necessary to avoid the government from having to pay compensation to Plus as per the concession agreement.

The statement said that they have explained to Cauti that the revision is part of the concession agreement between the company and the government.

"It also explained that under the current toll rate schedule, the toll rate of 13.60 sen for year 2005 would still be 19.5 per cent lower than the toll rate of 16.89 sen stated in the original 1988 Concession Agreement, and 15.01 sen in the first Supplementary Concession Agreement in 1999.

"Plus also clarified certain issues and misconceptions raised by the group during the course of the briefing. These included lack of transparency in the extension of the concession period and details of the debt repayment structure," the statement said.

It said Plus also informed the group of its obligations to its stakeholders - the government, its lenders, shareholders, employees as well as highway users.

"It also detailed improvements and upgrading works continually being done to the NSE since the last toll increase in 2002 to make highway travel safer, more efficient and comfortable."

The statement added that Cauti was given a breakdown of Plus expenses, of which for every ringgit collected in toll, 34 sen is for debt repayment, 43 sen is ploughed back to maintain, operate and upgrade the expressway, and 23 sen as dividend to shareholders.

"For year 2004, Plus paid out RM360 million to its shareholders, 85 per cent of which are related to the government, in the form of Khazanah Nasional Berhad, the Kumpulan Wang Simpanan Pekerja, Pertubuhan Keselamatan Sosial (Socso), Kumpulan Wang Amanah Pencen, and other government-related institutions. "

Plus managing director Idrose Mohamed in the statement said that the 'toll revision is fair, justified and reasonable as it will not burden non-highway users.'