Caroline Muscat
Company rakes in profit from wardens, cameras
Wardens earn up to €5 an hour. Photo: Darrin Zammit Lupi
Local councils are charged hefty hourly fees for the provision of warden services, with standard rates starting from €18 going up to €23.30 per hour, yet the wardens themselves only earn up to €5 per hour.
A contract between a regional joint committee and The Guard and Warden Service House Ltd seen by The Sunday Times states that if local councils reduce the weekly hours of service, the fees increase to ensure a satisfactory return for the company.
On the other hand, the rates are lowered if the councils request more hours than those listed in the agreement. On Sundays and public holidays, the charges increase.
The services, managed by the various local councils' joint committees, also include the provision and installation of speed cameras. Under the agreement, the contractor receives the majority of the revenue from speeding fines though it has to foot the bill for installation and maintenance.
The Guard and Warden Service House Ltd provides local enforcement services at similar rates to six out of nine joint committees.
When contacted, Kenneth De Martino, chief executive of KDM Group, of which The Guard and Warden Service House Ltd is a subsidiary, said: "We were successful because we believed in the system and we invested in equipment, vehicles, computers, software and people," he said.
The company is also responsible for the installation, operation and maintenance of speed cameras. While motorists have accused the Malta Transport Authority (ADT) of using cameras to solve cash flow problems, it transpires that the ADT actually gets a minimal portion of the revenue.
For the duration of the five-year contract, speeding fines are established at €69.90 per ticket. In the first year, the income is shared as follows: 66.6 per cent to the company and 33.3 per cent to the local council. From its share, the local council has to pay €11.65 per ticket to the ADT. It also has to reimburse the contractor the cost of postage at the rate of 15c for every valid speed camera ticket issued.
For six months of the next year, the share of revenue for local councils increases to 40 per cent, and then to 46.6 per cent in the following six months. Thereafter, the revenue is shared equally.
However, the large majority of speeding fines are issued in the first three to four months of a camera's operation, making the company the main beneficiary.
Mr De Martino confirmed that his company generated good revenue in the initial months that speed cameras are installed and their percentage of revenue decreased as income fell. But, he said, this was fair due to the investment made by the company: "The first three to four months are healthy from a commercial point of view but after that the revenue from speed cameras dies; yet the level of service remains," Mr De Martino said.
"The cost base is phenomenal. We made a great investment in equipment, support services and licensing fees.
"Cameras also need to be calibrated every 12 months, which means I have to send the equipment overseas to laboratories accredited by the EU and accepted by the Malta Standards Authority for inspection and calibration."
Mr De Martino insisted that his company provided a service and had no control over the number of speed cameras installed or their location and speed limit. Before the privatisation of traffic management, enforcement fell exclusively within the competence of the police.
Now, as well as The Guard and Warden Service House Ltd, another company - Sterling Security - provides local enforcement services to the two joint committees grouping 14 local councils in the south of Malta.
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M. Zammit
Apr 19th 2009, 16:56
First of all I would like to point out that reading this article is certainly illuminating and also one realised how quick we all are to jump in and pass comments which sometimes sound like a child stamping it's feet.
1. Adrian Cardona says "And so much for the claims (especially from the Bkara council) that local councils don't get a penny from speed cameras!!! What liars!" - the article clearly states that it is not Birkirkara Local Council that gets the money but the Birkirkara Joint Committee.
2. Deo Catania is unsure if he wants the wardens or not. On the one hand he complains that wardens are ticketing machines and at the same time complains that use see no wardens at another spot. I wonder what he would say if he were double parked in the location he mentions and gets tickets?
Deo Catania's way of arguing is typically that of the average Maltese citizen. We do want the wardens to be effective but not when it comes to our pocket.
When are we going to be responsible adults and stop acting childish and decide what we want? If you don't want to be ticketed, abide by law!
H. Williams
Apr 13th 2009, 17:45
Joe Fenech
Apr 13th 2009, 00:55
It is unheard of to have a private policing company. This is not some security service but a proper policing job. SHAME ON YOU MALTA!!!!!! Scrap the scam warden system!
Adrian pace
Apr 12th 2009, 23:17
This is disgusting.....Extortion pure and simple, this is a racket between the warden companies, the government who rakes in tax revenues and the local councils, all profiterring from this outright abuse. Mr. Demartino should be made answerable for all the recent attacks on his wardens which stem from the greedy pressures his company puts on them to harass motorists
A.Agius
Apr 12th 2009, 21:24
I fully agreewith Mr. I. Galea.
These cameras are a money grabbing gimmic & a mock to social justice.
They contribute towards the aggravating pollution factor.
People just squeeze the brakes in the camera vicinity & accelerate
Muscat. Pat
Apr 12th 2009, 19:11
I would have expected Mr Demartino to say "The first three or four months are very healthy from an educational point of view" and not "healthy from a commercial point of view". Speed cameras are about EUROS and not about safety or education. We have it in black and white !
lgalea
Apr 12th 2009, 17:20
Enforcement of the law must never be left to private persons/companies since the private sector will want to make as much profit as possible.
No wonder there are so many claims of irregularities not to mention blatant issues of tickets for trumped-up contraventions.
People, use your votes to write on after voting for your candidates/party and send your message to scrap the private wardens system and give back traffic management and law enforcement to the police. At least, the fines will go to the government not to line private pockets.
wally vella-zarb
Apr 12th 2009, 16:49
Deo Catania, it is evident that the San Gwann council is more interested in getting money from the warden who is regularly stationed near the Gas Tank corner, waiting to book people using their mobile or not wearing seat belts, than in providing a service for residents. The corner of Naxxar Road with Mensija Road is a case in point; cars stopping on the corner for the ATM on the main road and double parking in Mensija Road near the bakery are a constant reality. Do they do anything about the pavements? No. Does the council care? They do care, but only about trying to get our votes every three years. Not any more! Once bitten twice shy.
Ingrid Jones-cameron
Apr 12th 2009, 15:49
Law enforcement should be a goverment run entity where all monies from fines after costs go directly to maintaining the road network. Basta! mALTA IS THE ONLY COUNTRY donating millions to a private company from tax payers pockets while the roads are a disaster.
Adrian Cardona
Apr 12th 2009, 12:15
ISTHU!!
so more than half of the fine goes to a private company!! We are being squeezed dry to fund someone's private enterprise.
And so much for the claims (especially from the Bkara council) that local councils don't get a penny from speed cameras!!! What liars!
The whole system is just a money making exercise. That explains why the speed limits wers set at a much lower level than the much-touted 80th percentile rubbish they came up with.
Now just try and get my vote this time.
Deo Catania
Apr 12th 2009, 11:59
It's quite clear the wardens are not needed any more. They are just tax collectors for Gonzipn. Come to San Gwann during rush hour and try to drive along the narrow stretch of road along the busy main road.......cars parked illegally in front of shops obstructing traffic but NO WARDENS ever to be seen. I wonder why???? Had a small accident there last summer and when the warden came over I explained the situation, she replied by saying that the local council does not want them there. Just goes to show how serious our local council is. Then wardens book drivers for really minor offences plus the fines we get through speed cameras located in the most useless places all over the country.
James Dimech
Apr 12th 2009, 11:49
Typical racket PN style!
It is ok to privitize the whole warden scheme, but not under these conditions, especially since this is a sector where once a firm gets a contract it retains a monopoly.