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Message: <blockquote data-quote="vr2turbo" data-source="post: 1064101774" data-attributes="member: 92229">That is why this AES system will not cost the Police or JPJ any $$$. The 2 companies supplying the system will get a cut from the fines collected...From Motor Trader....<a href="http://www.motortrader.com.my/news/automated-enforcement-system-cameras-to-start-in-august/" target="_blank">Automated Enforcement System cameras to start in August | Motor Trader Car News</a>Automated Enforcement System cameras to start in AugustPosted on July 26, 2012 at 2:57 pmAES – the Automated Enforcement System – which has been much talked-about and anticipated since 2005 will become a reality this August when over 1,000 sophisticated cameras are activated around the country. The project is a jointly undertaken by the JPJ and two private companies with assistance from the Malaysian Institute of Road Safety (MIROS). The privatization of the project is due to its high cost which is believed to be at least RM800 million.The two companies investing in the project expect to get returns on their investment by taking a share of the money collected from fines. It’s understandable that, as investors, they would expect returns on the money they put in otherwise why make the investment? However, as mentioned by the owners of one of the companies, while profit is important, they also hope that their participation is seen as a ’noble effort’ to help reduce the accident rate in Malaysia.The AES will be used for recording offences at traffic lights (going through a red light) and on highways and main roads (exceeding speed limits)There is transparency in the way the companies will receive their commissions, unlike certain infrastructure agreements which have even been treated as Official Secrets and are difficult for taxpayers to know about.In the case of the AES project, there are three tiers agreed upon with different commissions applicable. In the first tier, each company will receive RM16 per valid summons (ie the fine is paid after due process is observed) and this tier is capped at RM5 million per company. Assuming that 10 million summonses are issued each year (only based on offences captured by the AES) and fines of up to RM300 are paid on 50% of the summonses, each company would get up to RM80 million. When the second tier kicks in, each company will be entitled to 50% of the fines collected with a cap of RM270 million. For Tier 3, the commission will reduce to 7.5% and the projection is RM66 million per company by this time.There is a 5-year contractual period for the development, operation and maintenance of the system by the two companies and after that, the government can either take over or extend the contract (and presumably new terms can be negotiated as well).</blockquote>

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