[UPDATED] MySejahtera: PAC finds RM196 mil procurement ceiling price too high

KUALA LUMPUR – The Public Accounts Committee (PAC) has concluded that the ceiling price of RM196 million set by the Finance Ministry for the procurement of the MySejahtera app for two years is high and went against the CSR concept mooted in the early days of its development.

The committee also said in its latest report released today that the move against commercialisation is apt to ensure the security of user data.

Other findings, according to the PAC, are that KPISoft’s appointment as app developer went against government procurement procedures, and that the app’s intellectual property rights have yet to be registered as of April this year. 

In today’s report, it is stated that the corporate social responsibility (CSR) concept used by KPISoft was seen as a mechanism to get the government project without proper procurement procedures.

“There were no documents stating that the CSR was for only a year. The government seemed to have no choice (stuck) and had to make a decision to appoint MySJ Sdn Bhd via direct negotiation. 

“The continued development and use of the MySejahtera application should remain CSR in nature.”

The PAC added that the government was unclear on the direction of the app development and confused over KPISoft’s appointment, the CSR concept and its timeframe as well as app ownership.

In a separate statement by PAC chairman Wong Kah Woh, he said there were no minutes or supporting documents relating to KPISoft’s appointment, and only a non-disclosure agreement was signed between the National Security Council (on behalf of the government) and the company.

He added that the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) has the expertise and capabilities to take over the app’s developer and operation.

Following this the PAC recommended that the government reassess its decision of having direct negotiations over the app, which was decided by the cabinet on November 26, 2021.

Other recommendations include allowing Mampu to take over the app while the government should be more prudent in its procurement process.

Additionally, the government should take full ownership of the app and ensure data security.

In a PAC report released earlier this year, it was revealed that the cabinet decided to transfer ownership of MySejahtera from developer KPISoft – now known as Entomo – to a special purpose vehicle called MySJ Sdn Bhd, which was appointed through direct negotiation.

MySejahtera went live on April 20, 2020 as a free service provided by a company called KPISoft Malaysia as a CSR programme over a one-year tenure. – The Vibes, October 4, 2022