The Malaysian Insight

FORMER transport minister Liow Tiong Lai has been called up by the Public Accounts Committee (PAC) to explain the manner in which the Vehicle Entry Permit (VEP) system between Johor and Singapore was awarded and implemented in 2015.

This follows the Auditor-General’s Report 2017 (second series) and questions on the implementation of the RM149.45 million system that not only saw a drastic hike in operational expenditure, but was also awarded through direct negotiations and not open tender.

Former prime minister Najib Razak was said to have been given assurances by Liow that the contractor was capable and had the required expertise.

However, it was later learnt that the contractor had no experience in the field. The contractor was also found to have only RM35.54 in its accounts instead of the required RM2.3 million.

PAC deputy chairman Wong Kah Woh told The Malaysian Insight that the meeting with Liow will be held in mid-January.

“We will discuss the awarding of the VEP system contract to a company called TCSens Sdn Bhd without an open tender.”

It is understood that TCSens is linked to former MCA deputy secretary-general and ex-Tanjung Piai MP Wee Jeck Seng. Liow is former MCA president.

The project involved two contracts – Capital Expenditure Contract (Capex), worth RM45.15 million, and Operational Expenditure Contract (Opex), worth RM104.3 million.

TCSens also subcontracted Opex to a third party, despite not being allowed to do so.

Other irregularities included equipment worth RM4.07 million – such as barrier gates, cameras and fix readers –that was not installed.

PAC will also look into other issues raised in the audit report, including 2,365 defects found at KL Sports City following its upgrade.

“We will discuss the Youth and Sports Ministry’s upgrade works on the Bukit Jalil Sports Complex. These include the purchase of chairs and computers, the subpar fire-suppression system and the handover of the project before a certificate of fitness was awarded,” said Wong, who is also Ipoh Timur MP.

However, he said, PAC has yet to determine whether it would summon former youth and sports minister Khairy Jamaluddin.

He added that PAC has the authority to summon people for questioning under the Houses of Parliament (Privileges and Power) Act 1952, and should they refuse, the committee could request that police issue an arrest warrant.

He also said retired civil servants, ministers, deputy ministers and secretaries-general are obligated to present themselves when summoned by PAC.

“Even though PAC has not issued warrants before, it has the authority to do so.” – January 1, 2019.