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New Straits Times 10 April 2001

PLUS fails to pay RM53,000 assessment to municipal council

Highway concessionaire also ignored six council notices to pay up
by Hamidah Atan (

Projek Lebuhraya Utara-Selatan has failed to pay annual assessment amounting to RM53,320 since 1995 to the Seremban Municipal Council despite repeated reminders, a 1999 Auditor-General's Report revealed.

The report, however, does not indicate the type of the premises.

Under Section 127 of the Local Government Act 1976, premises in areas under the jurisdiction of the council should be paying assessment.

However, checks based on the council's reports show that PLUS has failed to settle the accumulated amount since 1995 despite repeated reminders by the council.

The report says six notices to such effect had been sent to PLUS. However, no payment has been made.

The report says it was understood that PLUS has refused to settle the amount because it was under the impression that under the concession agreement with the Federal Government, PLUS was exempted from making such payment.

The report added the matter had been referred to the Attorney-General's Chambers and the latter, in its reply, contended that it should be making the payments.

The A-G said Clause 6.1 of the agreement contravenes the Local Government Act as well as the Federal Constitution.

The report also says that a random check showed that 2,518 of 87,684 council files confirmed delays in carrying out assessment at new houses or buildings after the issuance of the Certificate of Fitness.

Due to the delays, the council was unable to collect taxes amounting to RM944,625.

The report, signed by Auditor-General Datuk Dr Hadenan Abdul Jalil, recommended that assessment work be privatised so that the council could impose taxes without delay after completion of a house or building.


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