Watchdog demands answers over RM200mil in unremitted RTD collections

KUALA LUMPUR: The government must explain how My E.G. Sdn Bhd and Zetrix AI Bhd failed to remit up to RM200 million in revenue collected on behalf of the Road Transport Department (RTD), says an anti-corruption watchdog.

Malaysia Corruption Watch (MCW) president Jais Abdul Karim questioned what control mechanisms were in place to ensure all collections were properly recorded, reconciled and remitted.

He said the government needed to clarify the actual amount still outstanding, the period over which the arrears accumulated, the remittance schedules specified in the contract and the action to be taken if the debt was not settled.

"If it is confirmed that the arrears have accumulated since the contract began in May 2023, it raises serious questions about the effectiveness of monitoring, reconciliation and auditing mechanisms," he said in a statement.

Calling for an audit, Jais said money collected on behalf of the government must have a clear audit trail from the moment payments are made until the funds reach government accounts.

He asked how frequently the agents were required to remit collections — whether daily, weekly or monthly — who was responsible for reconciliation, when the arrears were first detected and what reminders or notices had been issued.

Jais said the most critical question for the government and related agencies to answer was how the outstanding amount could have reached RM200 million.

"At the same time, what action will the government take to ensure that all outstanding collections are recovered, apart from suspending MyEG and Zetrix AI as collection agents?" he said.

He added that the government must use all contractual and legal mechanisms available to recover the money.

Yesterday, the RTD announced that it would suspend the services of My E.G. Sdn Bhd and Zetrix AI Bhd as collection agents, effective Oct 5.

Both companies are under the MYEG Group.

The suspension follows reports that Zetrix AI owes the government more than RM200 million in unremitted collections from traffic summonses, road tax and driving licence renewals dating back to May 2023.