3 DAP MPs and I were at Works Ministry library yesterday morning 9am queuing up to view the toll concessionaire agreements, which were made public for the first time yesterday.
We were only allowed to read 1 agreement per appointment for 2 hours in the library. Frustrated but with no choice, I chose to view the Grand Saga (Cheras-Kajang highway) concessionaire agreement.
The starkest shock I gathered from the agreement is that the government has to provide a “Support Loan” of RM59 millions for the concession company who is already a 32-year concessionaire! And the terms and condition of the loan is provided in a separate “Support Loan Agreement” which is not declassified yet!
Simply interpretation is, on top of the parting of the goose that lays the golden eggs to Grand Saga, the government still has to lend RM59 millions to the private company for the project.
Isn’t this a fundamental breach of the concept of privatization?
Another lopsided clause provides that if Grand Saga violates the agreement, it is given 6 months to make good the breach and failing which, the government will still have to compensate Grand Saga before the agreement can be terminated.
Lim Lip Eng