RM314m MyEG arrears raise governance, accountability concerns, says PAC

KUALA LUMPUR: The failure to remit RM314 million in government revenue collected by My E.G. Sdn Bhd and Zetrix AI Bhd between May 19 and Sept 30 has raised broader concerns about governance, financial controls and accountability, the Public Accounts Committee (PAC) said.

Its chairman, Datuk Mas Ermieyati Samsudin, said the matter went beyond the issue of payment arrears, particularly as the two companies, which are under the My E.G. Group, were entrusted with collecting revenue on behalf of the government.

She said there were many questions that needed to be answered.

"Among them are how such a large amount of RM314 million could have accumulated without being remitted during that period and what monitoring and control mechanisms were established by the government?

"Also, were the terms of the agreement or concession fully complied with and, most importantly, were the interests of the government and public funds sufficiently protected?" she said when contacted.

She said the government must not only explain how the money would be recovered, but also how the situation could have occurred to the point that 35 reminder notices had to be issued and what action would be taken to ensure such a matter did not recur.

Asked whether the PAC might open proceedings into the matter, Mas Ermieyati said the committee had decided that its priority was to complete ongoing proceedings and reports, which were at various stages.

"At this stage, it is most likely that the PAC will not add a new subject to its proceedings. But this does not mean the RM314 million issue should escape public scrutiny and accountability."

Malaysia Corruption Watch (MCW) president Jais Abdul Karim said the short period from May to September did not make the governance issue any less serious.

"In fact, RM314 million accumulating within just over four months raises an important question about the effectiveness of the collection, reconciliation and remittance controls governing third-party collection agents."

He said MCW was concerned by the disclosure that 35 reminder notices had been issued and four engagement sessions held, yet the arrears continued to grow.

"Even more serious is the disclosure that a RM231 million cheque submitted by the company was not processed by the bank on the company's instructions.

"Government revenue collected by an appointed agent is not the company's money. It must be remitted promptly and fully to the government in accordance with the agreed terms."

He said MCW supported the suspension of My E.G. and Zetrix AI as collection agents and the government's efforts to recover the full RM314 million immediately.

"There should be a transparent review to establish how such a substantial amount was allowed to accumulate despite repeated notices and engagements."

He said the government should review whether safeguards, including settlement timelines, bank arrangements, guarantees, monitoring mechanisms and enforcement triggers, were sufficiently robust.