What is the rationale behind the RM196 million ceiling price?

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Rationale Behind the RM196 Million Ceiling Price for MySejahtera Not Fully Disclosed

The specific rationale and detailed breakdown for the RM196 million ceiling price set by the Finance Ministry for the procurement of the MySejahtera application over two years remain unclear based on available information. The Public Accounts Committee (PAC) noted this amount as being high and inconsistent with the concept of Corporate Social Responsibility (CSR).
PAC Findings on Procurement Irregularities

The PAC reviewed the procurement of the MySejahtera application and found that the appointment of KPISoft Malaysia Sdn Bhd, previously Entomo, did not adhere to established government procedures. There were no documented meeting minutes or supporting materials for the appointment, with the only existing document being a non-disclosure agreement between the National Security Council and KPISoft. This lack of transparency raised concerns about the procurement process, especially since KPISoft retained the intellectual property rights of the app despite the government's assurances of ownership and data protection.
Conflict Between Procurement Price and CSR Concept

A significant point of contention for the PAC was the utilisation of a Corporate Social Responsibility (CSR) initiative to secure a government contract without following standard public procurement processes. While KPISoft initially provided the app for free for one year before charging from April 2021, the PAC found no documentation confirming the duration of this CSR period. The committee suggested that the continuous use of the app should have remained a CSR effort, and its terms should have been clearly stipulated rather than serving as a basis for direct negotiations. The RM196 million ceiling price, therefore, appeared to contradict the spirit of CSR, which typically implies a charitable or community-focused contribution rather than a substantial financial commitment.
Government's Position and Data Ownership Concerns

The PAC's report highlighted a lack of clarity regarding KPISoft's appointment, the nature of the CSR arrangement, and the ultimate ownership of MySejahtera. Although the government stated it owned the app, the fact that KPISoft held the intellectual property and the Cabinet's decision to procure it from the developer suggested the developer's continued claim to ownership. Furthermore, as of April, the government had not yet registered the intellectual property for MySejahtera with MyIPO, a step the PAC recommended to ensure full government ownership and prevent potential future claims by the developer.

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What is the rationale behind the RM196 million ceiling price?

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