AAM continues to be bogged down in financial troubles

By THE STAR | 3 December 2017


PETALING JAYA: All is still not well at the Automobile Association of Malaysia (AAM), despite plans to resuscitate what was once Malay­sia’s premier motoring body.

It is learnt that many of its employees have yet to be paid, some for up to 11 months, as the body continues to struggle with its debt crisis.

A senior staff member said he had been showing up for work despite not receiving his salary for almost a year.

“Things are gloomy. It is hard to keep your spirits up under these circumstances.

A check with the AAM breakdown number 1-300-226-226 at 4pm on Friday confirmed that the breakdown service was not being run by AAM and that it had been outsourced.

A staff member who answered the “distress” call simply said: “Sorry, sir, we have to call a tow truck but you have to pay first. You can claim later from us.”

Asked if there would be a refund, she did not seem clear.

Its members have been posting their frustration at AAM on the 1300 and 1800 toll-free directory website.

The AAM staff member said motorists who bought comprehensive insurance coverage were entitled to free breakdown assistance from the companies concerned.

He said many AAM members were not renewing their memberships, with many also demanding refunds.

“What we did last time was to sell a 2+1 membership, where you paid for two years and got free for one year.

“This was supposed to boost revenue, but there was no money coming from other channels to cover the free one-year part,” he said, adding that a lot of memberships were sold to last till 2018.

Attempts to contact AAM chairman Tunku Mudzaffar Tunku Mus­tapha and his deputy Wan Zaha­rud­din Wan Ahmad were unsuccessful.

The issue of unpaid AAM employees was also raised in Parliament by Kuala Langat MP Abdullah Sani Abdul Hamid on Nov 23.

AAM, founded in 1932, was most popular for offering a 24-hour vehicle breakdown service. It also helps issue motor insurance cover notes and handles road tax and driving licence renewals.

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