The ministry of transport’s (MoT) appointment of three new non-Puspakom automobile inspection firms on Friday led to plenty of hypothesis on why these particular corporations – which apparently had both solely been lately included or had no expertise in automobile inspections – have been awarded contracts. The mentioned ministry has now come out to clarify its choice course of, insisting that it was primarily based on monetary stability.
As beforehand reported, 12 firms despatched proposals for turning into motorized vehicle inspection service (PPKM) suppliers earlier than the October 31 deadline. All purposes have been evaluated in keeping with procedures outlined within the Treasury Round 2.8 – Procurement Procedures by means of Requests for Proposals (RFP) that has been in impact since November 29, 2022, MoT mentioned.
It added that the choice of firms have been primarily based on the rules set below the Street Transport Act 1987 (Act 333), together with eligibility necessities, procedures, laws and requirements that may be discovered on the MoT and street transport division’s (JPJ) web sites since April 23.
Among the many primary necessities for the businesses coming into the RFP course of included being registered and licensed with the businesses fee of Malaysia (SSM) and native authorities, having a minimal paid-up capital of RM10 million all through the size of service, and having a minimal working capital of RM5 million per yr.
They need to additionally receive a requirements compliance certificates from the requirements division inside two years of the provide date, present a minimal 5 per cent deposit or bond from their working capital, receive an authorised facility certificates from the environmental division earlier than licensing, and be registered as a member of the Worldwide Motor Car Inspection Committee (CITA) inside two years of the date of licensing.
Their shareholders, homeowners and board of administrators additionally can not have any pending court docket proceedings or actions or be blacklisted by any authorities. The analysis and licensing committee discovered that the three chosen firms – Wawasan Bintang, Pakatan Petroleum and Beriman Gold – absolutely met the said standards.
The ministry mentioned that neither it nor JPJ set the interval of the businesses being registered with SSM as a requirement, as an alternative giving precedence to their monetary stability primarily based on their potential to supply ample paid-up capital and dealing capital.
It added that since 1994, Puspakom had hitherto been the one firm mandated to conduct automobile inspections below the Street Transport Act 1987. As such, no different firms might have had the expertise in finishing up Puspakom’s features earlier than.
As for the places of the service suppliers, MoT mentioned it decided these primarily based on a “cross subsidy” idea, whereby firms have been delegated each low- and high-capacity areas. This prevents any firm from solely selecting places with excessive quantity and ensures all customers nationwide get entry to automobile inspection providers. It additionally harassed that the places have been distributed to the businesses by MoT and JPJ; they weren’t chosen by the businesses themselves.
The ministry reiterated that the provide letters awarded to the chosen firms on Friday have been conditional approvals. This requires every agency to prepared the mandatory infrastructure, tools, manpower and different necessities inside 24 months (two years) earlier than the MoT and JPJ will even subject working licenses.
As such, the federal government won’t be financially burdened by this method, it mentioned; it won’t grant the working licence if the businesses fail to satisfy the situations throughout the specified interval. The procurement course of, MoT added, was carried out primarily based on the procurement and monetary procedures in pressure to make sure high quality, clear, and aggressive automobile inspection providers for the good thing about the rakyat.
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