Republican legislator calls for hearing on controversial E-ZPass contract

A Republican legislator on Monday called for hearings about a controversial E-ZPass contract with a company that some believe has ties with the Chinese government.  

Last September, the New Jersey Turnpike Authority awarded the Nashville-based TransCore a $1.7 billion contract to operate the E-ZPass system. Conduent, the Newark-based company that currently operates E-ZPass but lost the newest contract to TransCore, raised concerns about its competitor’s ties to a Singapore-based firm.

The Singapore-based ST Engineering acquired TransCore in 2022, according to NorthJersey.com. The largest shareholder of STE, Temasek, once employed a board member named Fu Chengyu, a Chinese businessman with ties to the Chinese Communist Party.

TransCore’s CEO called the accusations “fearmongering” in a statement to NorthJersey.com and said there is no connection between TransCore and the Chinese Communist Party.

State Sen. Doug Steinhardt (R-Lopatcong) isn’t convinced and asked Senate President Nick Scutari for a hearing into how the contract was awarded. Steinhardt asked why TransCore was awarded the contract despite Conduent’s bid being about $250 million cheaper.

The Turnpike Authority considered price, approach to customer service, and several other categories when considering bids, according to reports. 

Steinhardt mainly said he was concerned about data privacy for E-ZPass customers.

“I remain deeply concerned about the potential for E-ZPass customer data to be accessed or exploited by hostile foreign entities,” Steinhardt wrote in his letter to Scutari. “I am also alarmed by the possibility that foreign governments could use this access to track government personnel, monitor military movements, and observe sensitive commercial or logistical patterns along New Jersey’s transportation corridors.”

Steinhardt isn’t the only official with concerns. State Sen. Joseph Pennacchio (R-Montville) has asked the U.S. State Department and New Jersey’s comptroller to review the deal.

Rep. Josh Gottheimer (D-Tenafly), a Democratic candidate for governor, wrote a letter to Turnpike Authority Chairman Francis O’Connor asking for more details about the contract.

“Should TransCore ultimately retain the contract, they will have access to the personal information of New Jersey drivers, including, but not limited to names, home addresses, license plate numbers, and contact information,” Gottheimer wrote. “I am concerned that information could fall into the hands of our number one adversary.”