Why was RM149 million RC/VEP project awarded via direct negotiation?

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Public Accounts Committee Found No Solid Justification for Direct Negotiation Award of RM149 Million RC/VEP Project

The RM149.45 million Road Charges (RC) System and Vehicle Entry Permit (VEP) project was awarded to TC Sens Sdn Bhd through direct negotiation between 2016 and 2018 without sufficient justification, according to the Public Accounts Committee (PAC). This procurement method, intended to expedite project implementation, failed to achieve its objective and involved a selection process that lacked a comprehensive assessment of the company's capabilities and was subject to political influence.
Lack of Comprehensive Assessment and Political Influence

The PAC's findings indicate that the selection of TC Sens Sdn Bhd was presented to the Prime Minister without a thorough evaluation of the company's financial standing and technical expertise relevant to the RC/VEP project. Furthermore, the committee noted the presence of political influence in the appointment of the contractor, raising concerns about the integrity of the procurement process for this project, which was primarily intended for deployment at the Customs, Immigration and Quarantine (CIQ) Complexes in Johor.
Contractual Administration and Implementation Deficiencies

Significant weaknesses were identified in the administration and execution of the contract. These included a substantial 16-month delay in the signing of the contract and payments being disbursed prior to the completion of the Final Acceptance Test (FAT). Additionally, the unapproved appointment of a third party to assist in the project's implementation further highlighted administrative shortcomings.
Project Delays Attributed to System Integration and Vendor Role

The RC/VEP project experienced delays, with three Extensions of Time (EOT) granted primarily due to system integration requirements. The PAC also highlighted that TC Sens Sdn Bhd's role as a vendor, rather than a comprehensive solution provider, contributed to these delays. This distinction suggests a potential mismatch between the company's capacity and the project's demands, impacting its timely and effective delivery.

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Why was RM149 million RC/VEP project awarded via direct negotiation?

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