By Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Petaling Jaya on Tuesday, September 18,1990:
DAP calls on the Government to stop paying $100,000 a day as compensation to Teratai K.G. Sdn. Bhd. For suspension of Cheras tolls as its collection was unlawful
The Prime Minister, Datuk Seri Dr. Mahathir Mohamed, said yesterday that the Government is paying $100,000 a day in compensation to the Jalan Cheras toll project developer, Teratai K.G. Sdn. Bhd. for the suspension of the Cheras tolls.
I call on the Government to immediately stop such payment as the imposition and collection of the Cheras toll Teratai K.G. Sdn. Bhd. Was unlawful and improper, for the following five reasons:
Firstly, the Prime Minister and Deputy Prime Minister have both admitted that there had been negligence in the tolls decision of the Cabinet, which failed to consider whether the toll rates were high or low and the problems of the Cheras residents. As the whole Cheras toll question was faulty and is being reviewed, what is the legal basis for the Government paying a daily compensation of $100,000?
Secondly, is there a clause in the privatization contract between the Government and Teratai S.K. Sdn. Bhd. justifying the compensation of $100,000 a day, or is this as estimate approved by the Cabinet? The public are entitled to know the full facts, and this is why the entire contract between the Government and Teratai S.K Sdn. Bhd. should be made public, or the Treasury should not be made to bear the $100,000 day compensation.
Thirdly, the prompt payment of $100,000 a day compensation to Teratai S.K. Sdn Bhd has reinforced suspicion that powerful personalities with political connections are behind the Teratai S.K. Sdn. Bhd, to the extent that the Government is prepared to pay $100,000 compensation a day, although there is no need for the Government to do so because the Cheras tools imposition on Sept.1 was unlawful and improper.
Fourthly, why was the compensation fixed at $100,000 a day, when the collection on the first day, Sept.1, was $50,000, while the collections in subsequent days nose-dived sharply to probably 10 per cent of its first-day collection?