Selangor S Parking Deal Stinks To High Heaven

---

Plans by the Selangor government to privatise the operations of street parking in four local authorities have taken several twists.
The most important was that the exercise has been deemed illegal by legal experts as it infringes upon the statutory rights of local councils to manage parking under the Road Transport Act (RTA) 1987.
The Local Government Act (LGA) 1976 governs, among others, the administration and management of local authorities, including the provision and regulation of parking facilities.
While the LGA does not specifically detail car park operations, it empowers local authorities to enact bylaws for managing public spaces, including parking areas.
ADSAdditionally, the RTA provides for the regulation of traffic, including parking, and grants the local authority the power to designate car parks and enforce parking regulations.
Accordingly, the Road Transport (Provision of Parking Spaces) (Petaling Jaya City Council) Order was enacted and gazetted, giving such powers to the local authority.
But on Wednesday, Selangor state executive councillor for local government and tourism Ng Suee Lim announced a new concession company, Rantaian Mesra Sdn Bhd, will take over parking fee collection and enforcement in four Selangor local councils starting Aug 1.
The councils involved are Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA), and Selayang Municipal Council (MPS).
Bernama quoted Ng (above) as saying the appointment was by Menteri Besar Selangor (Incorporated) (MBI Selangor) to improve parking revenue, which currently stands at only 30 percent from 1,000 bays, and reduce double parking in busy areas.
“The concessionaire will handle both fee collection and enforcement, under close supervision from the councils and state government.
“We target a collection rate of over 60 percent and hope to reduce double parking in busy areas,” he said.
The revenue will be split equally, with the concessionaire receiving 50 percent of the total. In comparison, the remaining 50 percent will be divided - 40 percent to the councils and 10 percent to MBI Selangor.
Petaling Jaya City CouncilTo put it bluntly, the councils’ revenue will be halved. In the case of Petaling Jaya, there would be a shortfall of approximately RM9 million from the RM18 million in annual collections. This means the council will need to explore alternative sources of funding, including potential increases in assessments.
Petaling Jaya MP Lee Chean Chung has already raised the alarm, saying MBPJ is at risk of being unable to deliver essential services to residents - including road maintenance, street lighting, public parks upkeep, and even the maintenance of parking facilities - all of which are already under considerable strain.
Questions of legal authority
Does MBI Selangor, a state-owned company, have the power to appoint contractors or concessionaires? Does the private company have the power to enforce parking regulations, even if it is under the supervision of council staff? Can they legally issue a summons for non-payment of parking fees?
ADSIt is akin to saying that the power to stop, search, and arrest can be delegated to security guards under the supervision of the police!
Currently, and according to law, councils issue summonses in the name of their respective presidents or mayors, in the cases of Petaling Jaya and Subang Jaya. So, under whose name will the summonses be issued under the new arrangement? Can the concessionaire impose penalties?
So, how would these new arrangements increase the collection rate from 30 percent to 60 percent, as claimed by Ng? How can the private contractor reduce double parking?
At a briefing by state government officials last month, MBPJ councillors rejected a proposal for a company based in Bandar Baru Sri Petaling, Kuala Lumpur, to take over the parking.
There was a change after my commentary on Malaysiakini on Tuesday, with Ng announcing Rantaian Mesra would be the new concessionaire.
I noted: “What sort of deal is this? The collection for parking is done electronically, and enforcement, including the issuance of parking tickets, is handled by the MBPJ.
“So, the third party sits in an air-conditioned office, shaking their legs, and getting rewarded by sums running into millions.
“Any such direction, if made, amounts to an abuse of power as the money rightly belongs to the people of Petaling Jaya and is to be used for their benefit, not a third party.
“Yet another case of “lembu punya susu, sapi dapat nama?” (Milk from the cow, but the bull gets the credit.)
A stink to high heaven
But Malaysiakini can reveal there was a conflict of interest from the word “go”.
A search at the Companies Commission of Malaysia revealed a startling fact. Rantaian Mesra is 100 percent a subsidiary of MBI, which owns all two million shares. Its principal activities have been listed as “engaged in the business of advertising and consultant services”.
Menteri Besar Selangor IncorporatedHow does MBI appoint itself through a subsidiary? More so, a company with no track record of parking operations. This means that MBI will now take 50 percent of the revenue from parking.
To say that this whole chapter stinks to high heaven may be an understatement. But MBI and Ng should not get their knickers in a twist.
There is a way out - defer the implementation pending a formal inquiry by the Selangor Special Select Committee on Competence, Accountability, and Transparency (Selcat).
Selcat has a record of successfully investigating and getting to the nitty-gritty, as it did in the case of illegal changes to the PJ Local Plan 2 and the shenanigans of former menteri besar Khir Toyo.
The public, especially Selangor residents, have a right and are entitled to get clear answers on why the money they pay to councils is being “robbed” by their “elders in the family.” - Mkini
R NADESWARAN is a veteran journalist who strives to uphold the ethos of civil rights leader John Lewis: “When you see something that is not right, not fair, not just, you have to speak up. You have to say something; you have to do something.” Comments: [email protected].
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

---