Saturday, October 13, 2012

AES = Automated Entrapment System ?

Automated Enforcement System ( AES ) began operation at midnight on Saturday, 22nd September 2012, with cameras in 14 black spots in Perak, Selangor and KL, to catch drivers who break speed limits and jump traffic lights.  It was reported that 63,558 offences were captured by 14 cameras alone over 8 days under the AES.  That is : 567 offences per camera per day !

More cameras will be installed at 831 black spots nationwide in the second phase.  Another 500 portable units will be handled by both JPJ and PDRM.

Two private companies were awarded contract to install, repair and maintain the AES cameras for 5 years.  There companies are ATES Sdn Bhd and Beta Tegap Sdn Bhd.  According to the news, MOT will make the payment in three stages.  First, the companies are entitled to RM16 per summons for the first 5 million issued, totaling RM80 billion.  For second stage, the remaining revenue will be split evenly with MOT, with a cap of RM270 million each.  Finally, the company will each receive 7.5% from the remaining revenue.

But Deputy Transport Minister Abdul Rahim Bakri said the contractors are at risk of loss.  He told Parliament that at the 26th km of Jalan Ipoh, Perak, the number of traffic offences dropped to zero in 3 days after the installation of AES. 

The AES system, according to JPJ Director-General Datuk Solah Mat Haassan, costs up to RM 800 million.  Both the two concessionaire companies, ATES Sdn Bhd and Beta Tegap Sdn Bhd, each invested RM 300-400 million.  Beta Tegap Sdn Bhd will set up and maintain the system for Selangor, KL, Negeri Sembilan, Melaka, Johor and Pahang, while ATES Sdn Bhd covers the rest of the country.

Solah stressed that the AES cameras  are to reduce the number of road fatalities.  Knowing where the AES cameras are, motorists are more careful and will drive according to the law.

The concessionaire companies will assess and prepare the sites, install and commission, maintain and monitor the cameras, establish and operate the control centers, depot printing offences.  JPJ will cross check the vehicle registration and issue summons.

There are currently 17.971 million vehicles on the road.  In 2010 alone, there were 414,421 reported accidents involving 760,433 vehicles, with 6,872 fatalities and 28,269 injured.
Lets do some calculation :
With average of 567 offences/camera/day, all 831 cameras will record a total of 471,177 offences/day.

1st Payment : RM16 x first 5 million summons
In almost 11 days, all 831 cameras will record a total of 5,265,216 offences.
º 567 offences/camera/day x 831 cameras x 11 days = 5,265,216 offences
\ an easy RM 80 million pocketed in < 11 days !!!

2nd Payment : 50% of the total summons up to RM 270 million
º RM 270 million = 900,000 offences x RM 300/summon  
( It will only need < 2 days for 831 cameras to record 900,000 offences. )
º 567 offences/camera/day x 831 cameras x 2 days = 942,354 offences
\ another easy RM 135 million in 2 days !!!

3rd Payment : 7.5% of the remaining summons
= daily revenue RM 10,769,760
º 567 offences/camera/day x 831 cameras x 1 day =  471,177 offences
º 471,177 offences x RM 300/summon x 7.5% = RM 10,601,483  
\ RM 10.6 million++ per day from 13th day onwards !!!

 º RM 10,601,483 x 351 days = RM 3,721,120,358  
\ RM 3.72 billion++ for remaining 351 days of 1st year !!! 
Even if the summons were given a 50% discount, its still a very profitable business snapping photographs.
( Can the summons be discounted?  Will the contractors agree to that ?  As discounted summons means less profit !!! )

Profit/Loss Analysis :
Total investment = RM 400,000,000
Total Revenue =
+ RM 80 millions ( first 11 days of 1 year )
+ RM 135 millions ( next 2 days of 1st year )
+ RM 3,721,120,358 ( remaining 351 days of 1st year )
+ RM 3,858,939,630 ( 2nd year )
+ RM 3,858,939,630 ( 3rd year )
+ RM 3,858,939,630 ( 4th year )
+ RM 3,858,939,630 ( 5th year )
= RM 19,371,878,878

Profit/Loss =
+ RM 19,371,878,878 – RM 800,000,000 -
= RM 18,571,878,878
º RM 3.71 billion/year
º RM 309 million/month 

I am not very good in mathematics nor business, can someone please audit my findings ?
Otherwise, I think this is the best money-making business plan ever !!!

Hrm…… I am wandering :
1. who are the directors of ATES Sdn Bhd and Beta Tegap Sdn Bhd ?
2. why outsource ? MOT cannot afford to fork out RM 800 million capital ?
3. was the contract really properly open-tendered ?
4. since the contractor are paid based on summons collected, doesn’t that means more summons generate more revenue ?  
5. will the contract somehow be extended ?

6. why pay the concessionaire so handsomely ?  
7. the portable units are akin to the present speed cameras used in speed traps, are the offences caught on portable units subjected to payment to the concessionaires ?
8. that mean that the 'old' speed cameras owned by PDRM now antiques in Police Museum?
9. does that means that the 'speed-traps' are now 'privatised'?
10. on what basis MIROS determined the black spots ?

11. if nowhere in Malaysia a motorist can drive over speed limit of 110 km/j, why allow production/import/sell/register high-powered cars ?
12. why not repair/rectify accident-prone roads ? loopholes/water-logged/uneven surface/bottlenecks/sharp bends/poorly lit/synchronized traffic lights … 

I suppose the answers are either confidential, sensitive, beyond jurisdiction, tak tahu or protected under OSA. L
Unless all the queries are satisfactorily attended to, I humbly think the implementation of AES should be put on hold.

watch out for this at the road !!!
If you ask me, I'd say It's just a moron excuse to share the big-fat-summons with someone well-connected.