This article first appeared in The Edge Malaysia Weekly on November 25, 2024 - December 1, 2024

The issues with Bestinet Sdn Bhd and the Foreign Worker Centralised Management System (FWCMS) seem to be never ending. Last week, according to a report by the Public Accounts Committee (PAC), the extended six-year contract spanning June 1, 2024, to Jan 31, 2031, inked between the government and Bestinet for the FWCMS could set the government back by a minimum of RM3.2 billion.

With a ceiling of 2.5 million foreign workers under the employment quota, the PAC estimates that the government will pay a minimum of RM3.2 billion over the six-year period, which is double Bestinet’s original RM1.57 billion claim for operating the FWCMS from 2018 to 2024.

How did the contract get finalised so speedily on Sept 3, following cabinet approval on Aug 14? Also, how did the ePass charge to the government by Bestinet increase to RM215 from the previous rate of RM100? What was the justification for the hike?

In July, the PAC found that the FWCMS contract between Bestinet and the government had neither been finalised nor signed, but the letter of acceptance was issued on Jan 12, 2018. So, after the home ministry had used the FWCMS for roughly six years without a finalised contract, it is now being significantly overcharged?

While the PAC said the extended contract was “overly favourable” to Bestinet and that it was “very disappointed” with the agreement, a number of questions have to be asked and the answers obtained, lest the whole incident recurs.

Were tenders called for the FWCMS, and who was behind awarding the contract in the first place? And must the government continue with Bestinet?

Although the PAC report said the government had approved the higher charge to avoid a legal dispute over Bestinet’s RM1.572 billion claim, is this the right approach?

Government officials often talk about the country’s finances being stretched, terming it a legacy issue. This has to stop as it will not get to the bottom of the issue.

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