IT makes valid sense for market regulators to suspend or review/scrutinise the contract awarded to NexG Bhd (formerly Datasonic Group Bhd) if investigation findings confirm serious misconduct involving alleged misappropriation of funds by its former chief operating officer (COO) Victor Chin Boon Long (main image, left).
In fact, the government should also direct an independent audit or forensic audit in addition to imposing enhanced governance conditions on the identification security provider, according to Economist at Universiti Tun Abdul Razak (UNIRAZAK) Professor Emeritus Dr Barjoyai Bardai.
Moreover, the government would also be justified in setting a clear policy that companies of strategic interest must respond to public allegations transparently within a reasonable timeframe.
“This approach balances public integrity, protection of taxpayers’ money and the principles of justice and law,” argued Barjoyai who specialises in structuring venture capital projects including financial arrangement and corporate restructuring.
The allegations against Victor Chin and governance issues at NexG are serious and involve national interest but have yet to be decided by the court.
To date, no official punishment has been imposed. The government shouldn’t act prematurely but should take firm and conditional regulatory steps.
The strongest signal to the market is that government contracts come with the highest governance responsibilities, not immunity.
‘No court conviction to-date’
In October 2025, NexG announced to Bursa Malaysia that its subsidiary Datasonic Technologies Sdn Bhd had secured a RM732.72 mil contract from the Home Ministry (KDN) for the supply of Malaysia’s national identity cards.
The security-based ICT solutions provider further stated that the contract which covers the supply of MyKad, MyTentera and MyPOCA (new structure) for the National Registration Department (JPN) will run for six years from June 1, 2026 to May 31, 2032.
Recently, NexG maintained that the company continues to comply with regulatory standards and corporate governance but will not provide further comment on allegations by Malaysia Corruption Watch (MCW) linking former COO Chin to fund misappropriation issues.
Chin who served as COO from November 2024 to September 2025 was alleged by MCW to have potentially embezzled RM303.7 mil in company funds.
MCW had previously submitted a memorandum to NexG founder CEO Datuk Abu Hanifah Noordin (main image, left), urging clear and transparent explanations to be provided to the public.
Meanwhile, Barjoyai contended that the government should not automatically terminate its contract based solely on allegations without official investigation findings, an independent forensic audit or a court decision.
He said there has been no court conviction to-date against Chin or NexG nor no announcement of penalties or compounds by the Securities Commission Malaysia (SC) , Bursa Malaysia or the courts in relation to these allegations.
“Investigations by cops and enforcement agencies are on-going following reports by NGOs and media coverage. However, no government contracts have been officially cancelled thus far,” added Barjoyai.
At 3.45pm, NexG was unchanged at 29.5 sen with 7.4 million shares traded, thus valuing the company at RM1.1 bil. – May 4, 2026
