PAC: “MySejahtera procurement overpriced, inconsistent with Gov’t procurement rules”

THE appointment of KPISoft Malaysia Sdn Bhd to develop the MySejahtera application was unorganised and did not follow procedures set by Putrajaya, a report by the Parliament’s Public Accounts Committee (PAC) revealed.

The parliamentary committee said no supporting documents or minutes were available to prove Entomo Malaysia Sdn Bhd’s (formerly known as KPISoft Malaysia Sdn Bhd) appointment as the application’s developer except for a non-disclosure agreement (NDA) signed by the National Security Council (MKN) and the company.

It also noted that the Finance Ministry (MOF) had set a ceiling price of RM196 mil for the acquisition of MySejahtera for a period of two years (RM98 mil per year).

“This amount was high and contradicted the concept of corporate social responsibility (CSR),” the report said.

It added that the CSR concept may have been used to procure the project without having to go through proper procedures.

“There are no documents to say that the CSR is only for a year. The government seems to be stuck and had to make a decision by appointing MySJ Sdn Bhd through direct negotiations,” it said.

As of April 2022, the committee divulged that the Government had yet to register the intellectual property (IP) for the MySejahtera application on MyIPO which means that the developer could still lay a claim to the application.

It added that the government had given assurance that the data within the application was safe and would not be misused.

“[Additionally], the Government insists that it is the owner of the MySejahtera application, but the developer, KPISoft (Entomo), has been found to have made a certificate that it is the owner of the IP,” the report noted.

“The decision of the Cabinet of ministers, which refers to the Government taking over the ownership of the MySejahtera application from the developer, shows that the application is in principle still owned by the developer.

“[However], the acquisition of the development and operation of the MySejahtera application can be carried out by the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU), which has the expertise and capabilities as a Government ICT (information and communications technology) technical department.” – Oct 4, 2022



Main Photo Credit: The Edge Markets

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