KUALA LUMPUR: The government is pursuing legal action against Zetrix AI Bhd and its subsidiary MyEG Sdn Bhd, over its failure to remit RM314 million in revenue collected on behalf of the road transport department.
Transport minister Loke Siew Fook said government revenue collected by the companies should not be used to fund their operating expenses, and that delays in remitting the money constituted a serious breach of the terms of their agreement.
"The government is now pursuing legal action, including civil suits against the companies, for failing to settle all outstanding amounts and penalties within the stipulated period," he said in winding up matters related to his ministry during the 2027 budget debate in the Dewan Rakyat.
The companies came under scrutiny earlier this month after it was revealed that RM314 million in JPJ collections had not been remitted between May and September this year.
Police and the Malaysian Anti-Corruption Commission are also investigating MyEG and Zetrix.
Zetrix, formerly known as MyEG Services Bhd, has provided online processing services for JPJ transactions, including road tax and driving licence renewals, since 2000. Its latest three-year contract began in May 2023.
To prevent further revenue leakages, Loke said JPJ was upgrading its MySIKAP portal and MyJPJ super app to reduce reliance on third-party agents.
He said a proposal to use the Treasury's minor receipts account to channel collections directly into government accounts was being discussed with the finance ministry and the accountant general's department.
Other proposed measures include upgrading the government revenue management system to automatically halt transactions if an agent fails to transfer collections within 10 days, and requiring collection agents to provide guarantees from their parent companies.
At 5pm, Zetrix's share price had risen one sen to 8.5 sen, with 286.55 million shares traded.