A news report in last week’s New Sunday Times (18.3.07) caught the attention of an eagle-eyed reader, Tan Poh Soon, who has emailed about how ridiculous it was to spend RM70 million to instal a system to collect traffic fines from Singaporeans, which will take some 24 years to recoup the cost if the system could last that long:

While reading a news regarding Singaporean motorists paid a total of RM8 million in Malaysia traffic fines over the past three years, i noticed that it is also mentioned that the outstanding summon are being track down with a system known as Automated Vehicle Screening System.

According to the news, there are currently 24 unit of such system, where each unit cost RM2.9 million. The news also reported that the relevant department will add more of such unit at various places.

I’m wondering what is the rationale of installing such system which is so much expensive. Even if the system are able to track down RM8 million of unpaid summons every 3 years. It will still need at least 24 years to recoup the investment.

Do take note that this does not include the opportunity cost, interest and maintenance cost. Furthermore, i doubt that such system will be able to last 24 years.

Apart from this, i’m also curious about the the following:

1. is the tendering process for such system is tranparent?

2. Is there no other better and cost effective solution to tracked down the upaid summon?

The RM70 million AVSS acquisition does not make sense. Horror of horrors, the purchase and installation of more AVSS units at all entry and exit points nationwide are being planned.

Wasn’t any cost-benefit done before the Transport Ministry and Road Transport Department go on a spending spree to splurge tens of millions of ringgit on new equipments, which cannot be justified by any ROI study?

Who are the real beneficiaries of the RM70 million AVSS scandal?
Over to Transport Minister, Datuk Seri Chong Kong Choy – what say you?

The New Sunday Times referred to by Poh Soon is as follows:

Singapore motorists settle RM8m in traffic fines
By Jassmine Shadiqe

JOHOR BARU: A total of RM8 million in traffic fines has been collected from Singaporeans over the past three years, thanks to the Road Transport Department’s Automated Vehicle Screening System (AVSS).

The department has collected fines from 73,630 outstanding traffic summonses issued to Singaporeans since the system was installed in April 2004.

“There is only RM200,000 in unpaid traffic summonses left and the
Singaporeans have a 45-day grace period to settle them,” said RTD deputy director-general Solah Mat Hassan.

Each AVSS unit costs RM2.9 million and the department has 24 units installed in Johor, at the three main entry and exit points – the Causeway, Tanjung Puteri Customs Complex and the Second Link.

Two are installed at the entry points and 12 at the exit points of the Causeway; two at the Tanjung Puteri Customs Complex exit points; and four each at the entry and exit points of the Second Link.

Solah said the department was waiting for the green light from the federal government to instal AVSS units at all entry and exit points nationwide.

He said there were also plans for other enforcement agencies, such as the Johor Baru Municipal Council, to share information from the system.

If the vehicle owner has an outstanding traffic summons, his
particulars are updated into the system which is also online with the police and RTD database.

The unit scans the Singapore-registered vehicles’ number plates upon entering the country.

The offender is given a 45-day grace period to settle the summons.

If the summons is not settled during that period, the offender will not be allowed to leave the country until he does so.

Solah said initial concerns that the system would cause Singaporean motorists to shy away from entering Malaysia proved untrue as statistics showed that was no reduction in the number.

Although RTD officials admit the system has its glitches, they are
still happy with its overall effectiveness.

Solah said the AVSS units were sensitive and frequently break down.

“Sometimes the breakdown lasts up to two weeks.

“Still, the effectiveness of the system cannot be doubted. The figures do not lie.”