KUALA LUMPUR (Oct 5): eJamin, an online bail payment system operated by an indirect unit of Practice Note 17 (PN17) company Pertama Digital Bhd (KL:PERTAMA), ran for five years without a formal contract, the Public Accounts Committee found.

Bail funds were also deposited into a commercial bank account held by Dapat Vista Sdn Bhd, instead of the federal government’s consolidated trust account, in contravention of the Federal Constitution and the Financial Procedure Act 1957, according to the committee’s report released on Monday.

Article 97(1) of the Federal Constitution states that all revenues and monies raised or received by the Federation must be paid into and form one single fund, known as the Federal Consolidated Fund.

Section 7 of the Financial Procedure Act 1957, meanwhile, requires the consolidated fund to be maintained and managed through three separate bookkeeping accounts.

Dapat Vista is 80% owned by Television Airtime Services Sdn Bhd, a 51%-owned subsidiary of Pertama Digital. The remaining 20% is held by the technology outfit HeiTech Padu Bhd (KL:HTPADU).

eJamin was initiated following a 2017 study by Dapat Vista aimed at facilitating bail payments at courts. The system was implemented as a proof of concept with the agreement of the Chief Justice but without following the government’s prevailing financial procurement procedures.

Nationwide, the system was rolled out at 192 courts and operated for five years from Jan 10, 2020, without a formal contractual arrangement. During the period, bail payments were credited into a bank account wholly owned by Dapat Vista, the bipartisan parliamentary committee found.

Pertama Digital triggered PN17 status in July this year, after its shareholders' equity fell below the required threshold.It has been loss-making since 2021.

The bail deposit balance stood at RM193.71 million as at end- 2024. However, the committee discovered that only RM62.3 million was held in bank accounts with the remaining RM130.8 million invested by Dapat Vista in instruments including sukuk, without government approval or legal authority.

The investment allowed Dapat Vista to earn RM4 million to RM5 million in interest, which the company regarded as “service income”, the committee noted.

A balance discrepancy of RM557,258 was also identified between the eJamin system records and the company’s bank statements, with the difference yet to be verified.

The committee also flagged the absence of a trustee structure, performance bond or insurance to protect the bail funds, leaving bail guarantors as ordinary creditors in the event Dapat Vista becomes insolvent.

The lack of a formal agreement and trustee structure also exposed the government to financial and legal risks should Dapat Vista face financial difficulties or liquidation.

Former Chief Justice Tun Tengku Maimun Tuan Mat directed the suspension of eJamin in April 2024 and a return to the conventional method of managing bail payments following findings of non-compliance with financial procedures.

However, the suspension immediately drew widespread objections from the Malaysian Bar, legal practitioners and members of the public, who raised concerns over disruptions to the justice system and the smooth processing of bail releases.

The situation prompted intervention from various government agencies, including the Ministry of Finance, which in a May 17, 2024, letter directed that eJamin services continue temporarily to avoid disruptions to government service delivery.

eJamin resumed on May 24, with the Office of the Chief Registrar of the Federal Court seeking a special financial exemption from the finance ministry to allow the system to continue under the existing arrangement.

The Ministry of Finance on Nov 28, 2024, granted a special interim exemption to maintain the status quo for eJamin until December 2024, which was subsequently extended twice until Dec 31, 2025.

According to the PAC, the Prime Minister’s Department in March 2024 ordered the Chief Registrar’s office to transfer the bail funds from Dapat Vista’s account to the Prime Minister Office’s Accounts Division’s main account and proposed appointing Dapat Vista as a collection agent.

However, Dapat Vista rejected the proposal to act as a collection agent and said eJamin would be discontinued if the funds were transferred.

Dapat Vista instead proposed three options on Aug 18, 2025 — outright purchase, subscription or a hybrid model valued at RM40 million to RM80 million — as possible solutions without disrupting services to the public.

The Ministry of Finance rejected the commercial proposals and decided to retain the existing system under a formal contract with a trustee structure.

The Public Accounts’ Committee called on the government to expedite negotiations between the chief registrar’s office and the finance ministry to finalise a formal agreement with Dapat Vista to safeguard the bail funds.

The government was also recommended to finalise the definition of “public funds” to avoid confusion among government agencies and ensure the management and accounting of bail funds comply with the law.

The committee urged the court registrar’s office to develop its own internal bail module through the eCourt Finance or e-Kehakiman systems to reduce vendor dependence and ensure full government ownership of the data.

The government should also issue specific circulars and guidelines for the implementation of proof-of-concept projects to mitigate legal and financial risks while the chief registrar’s office should expedite the reconciliation of the criminal bail deposit account and conduct regular monitoring.

Broadly, the committee also called on the Ministry of Finance, the Attorney General’s Chambers and the National Digital Department to tighten procurement controls to ensure no vendor operates without a valid contract from the start of implementation.

Controls over the granting of special financial exemptions should also be tightened to uphold good governance principles, the committee added.