KUALA LUMPUR (Nov 6): The Public Accounts Committee (PAC) will summon representatives from three ministries and Spanco Sdn Bhd to assist in its probe into the government’s vehicle fleet concession, said PAC chairperson Datuk Wira Mas Ermieyati Samsudin.

The three ministries — the Health Ministry, Defence Ministry and Home Ministry — have the largest number of vehicles under the concession, Mas Ermieyati said in a statement on Thursday.

The MOF had already been called before the committee on Monday to address matters related to the concession, she said.

Spanco manages the government's vehicle fleet under a concession that dates back to 1994. Its initial 25-year contract ended in 2019. Following an open tender, a join venture led by Berjaya Corp Bhd — Cekap Urus Sdn Bhd — secured a Letter of Intent (LOI) for the concession. Berjaya controls a 51% stake in the JV, Naza owns 29%, and Tunku Tun Aminah Sultan Ibrahim Ismail holds the remaining 20%. 

However, the LOI was terminated in 2020, and the new concession — for 15 years, from July 2022 to July 2037 — was re-awarded to Spanco, which signed the contract on Jan 31, 2022. 

Cekap Urus has since filed a lawsuit against the Ministry of Finance (MOF) and Spanco, alleging that Spanco's winning bid was RM700 million higher, and that the LOI was wrongfully terminated and re-awarded.

The lawsuit and allegations of abuse of power also prompted the Malaysian Anti-Corruption Commission to open an investigation into the award process. 

This resulted in Spanco chairman Tan Sri Robert Tan Hua Choon, also known as the 'Casio King' for being the exclusive distributor of Casio watches in Malaysia, being charged for cheating in April 2024. He was accused of deceiving the MOF to award his company the new concession, worth about RM4 billion, by allegedly making a false claim regarding the company's Bumiputera shareholding status in a bid document. Tan has pleaded not guilty to the charge and this criminal case is ongoing.

Then in October this year, the Auditor General’s Report highlighted weaknesses in the federal government’s management of the vehicle fleet, citing delivery delays and a failure to impose penalties amounting to RM54.51 million on the concessionaire, despite 6,028 vehicles being delivered late — some by as many as 508 days.

Following the AG's findings, the PAC announced it would probe the vehicle fleet concession.

Meanwhile, Mas Ermieyati said the PAC is also examining the e-Jamin online bail payment system, with the Registrar of the Federal Court having been summoned on Tuesday.

To facilitate the probe, the committee will call Dapat Vista (M) Sdn Bhd, the contractor responsible for developing the system, as well as the Treasury Secretary-General for clarification.

Dapat Vista is 80%-owned by Television Airtime Services Sdn Bhd, in which Pertama Digital Bhd (KL:PERTAMA) holds a 51% stake. The remaining 20% is owned by HeiTech Padu Bhd (KL:HTPADU).

“All witnesses were called to provide comprehensive information to ensure a more detailed and transparent report,” said Mas Ermieyati.

Read also:
PAC to probe govt vehicle fleet concession after poor management flagged in AG's report
AG's report flags poor management of govt vehicle fleet, failure to enforce RM54.5m penalties 

To receive CEO Morning Brief please click here.