KUALA LUMPUR (Oct 6): Zetrix AI Bhd (KL:ZETRIX) said the exact amount it owes the Road Transport Department (JPJ) is still being finalised between the two parties, a day after Transport Minister Anthony Loke Siew Fook said the company had accumulated RM314 million in unpaid remittances.
It said this in a bourse filing on Tuesday following queries from Bursa Malaysia about several news reports by The Edge about the arrears, and the subsequent suspension of Zetrix and its subsidiary MyEG Sdn Bhd as JPJ collection agents, which Zetrix confirmed.
To Bursa's queries regarding the reasons for the suspension and the circumstances that led to it, Zetrix gave a similar answer: that it was due to delays in remittances to JPJ, and that the company is in the process of finalising the outstanding amount with JPJ.
On steps taken to address the issue, the group reiterated that it had submitted a payment proposal to settle the arrears, and that the final sum and settlement terms remain subject to further discussions and formal agreement with authorities.
As to how long the suspension would last, Zetrix said the suspension would remain in place until its discussions with JPJ, the Ministry of Transport and other relevant government authorities are completed.
"The company anticipates that the temporary suspension will be lifted upon mutual agreement and acceptance of the proposed solution framework submitted by the company to the relevant authorities," it said.
"The company is actively engaging with JPJ, the Ministry of Transport Malaysia and the relevant government authorities to finalise the outstanding matters and the proposed solution framework as expeditiously as possible, with a view to minimising operational downtime. The company will make further announcements once a formal timeline or resolution is confirmed," Zetrix added.
On operational impact, the group flagged that the suspension will result in a temporary loss of revenue and profit contributions from JPJ services in the fourth quarter of its financial year ending Dec 31, 2026 (4QFY2026), but did not give any estimates.
The affected services include road tax and driving licence renewals, learner's driving licence applications, summons enquiries and payments, vehicle ownership transfers and the Malaysian Computerised Driving Theory Test.
On Monday, Loke revealed that Zetrix owes JPJ RM314 million after failing to remit collections — which it was required to do daily, within one working day of each transaction — between May and September this year.
This led to the ministry and JPJ holding four engagement sessions with the company and issuing 35 reminders for the arrears to be settled, to no avail, he said. The government subsequently suspended Zetrix and its subsidiary MyEG Sdn Bhd as JPJ collection agents.
Loke also said Zetrix had issued the government a RM231 million cheque in September to settle the arrears, but the bank did not process it after the company instructed the bank to stop payment when the cheque was credited on Sept 30.
The government will continue pursuing the arrears and could consider civil action, while Zetrix's JPJ services will not be restored until the outstanding amount is settled, Loke said.
Even after payment, additional conditions would be imposed, including requiring collections to be credited directly into the government's account, he said.
Zetrix, formerly known as MyEG Services Bhd, has provided online processing of JPJ services such as road tax and driving licence renewals since 2000, while its latest three-year contract began in May 2023.
As of end-June, the company held RM541.6 million in cash and RM532.9 million in digital assets (cryptocurrencies), against RM2.19 billion in borrowings and RM90 million in trade payables, other payables and accruals.
On Tuesday, Zetrix shares rebounded 2.5 sen or 38.5% to close at nine sen, valuing the company at RM727.1 million.
The counter skidded to a 13-year low of 6.5 sen on Monday after its share price plunged 90% in just over a month following a sell-off at the counter that began at the end of August. The rout came amid reports that its largest shareholder Wong Thean Soon — better known as TS Wong — was facing forced selling.
TS Wong's stake has since shrunk from 29% to 10%.
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