PAC Says Govt Didn't Follow Procedures When Appointing MySejahtera's Developer

There were no minutes of meetings kept or supporting documents found regarding the appointment of MySejahtera's developer.

Cover image via New Straits Times & Utusan Malaysia

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The Public Accounts Committee (PAC) said that KPISoft Malaysia Sdn Bhd's appointment to develop the MySejahtera application did not adhere to regulations established by Putrajaya

According to PAC chairman Wong Kah Woh, there are no minutes or other paperwork to back up the claim that KPISoft, now known as Entomo, was appointed as the app's developer, reported New Straits Times.

"The only document in existence is a non-disclosure agreement (NDA) signed by the National Security Council (MKN), on behalf of the government, and KPISoft (Entomo)," said Wong, in a statement released today, 4 October.

According to the bi-partisan committee, Entomo's proposed corporate social responsibility (CSR) concept left the government confused about the real direction in procuring MySejahtera

"The government was confused about the appointment of KPISoft, the CSR concept, its duration as well as the ownership of the MySejahtera application," Wong added.

"The CSR concept has been used as a mechanism to secure a government project without having to go through the necessary procurement procedures."

PAC chairman, Wong Kah Wong.

Image via Utusan Malaysia

Wong also said that the one-year CSR period was not specified in any written agreement

"It appears as though the government did not have any other option and had to appoint MySJ Sdn Bhd through direct negotiations. The development and continued use of the app should have remained as a CSR initiative," he said.

He also said that the Ministry of Finance's RM196 million price cap on licencing the MySejahtera app for two years was excessive and went against the concept of CSR.

According to the PAC chairman, Entomo had admitted ownership of MySejahtera's intellectual property (IP) despite the government's assurances that it owned the app and would not misuse its data

"The Cabinet's decision referring to the government taking over the ownership of MySejahtera from the application developer shows that the application was, in principle, still owned by the developer," said Wong.

"As of April 2022, the government had yet to register the intellectual property for MySejahtera on MyIPO, which could see the ownership of the application claimed by its developer," he added.

The PAC urged the government to fully take over the MySejahtera application

They pointed out that the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) possesses the necessary skills and experience to manage MySejahtera.

The PAC also advised that the government be more careful while making procurements and set guidelines for CSR offers, reported Free Malaysia Today.

"All CSR offers are certainly welcomed. However, the terms of these offers must be spelt out clearly and CSR should not be used as an alternative route to (award projects) through direct negotiations," it said.

"The government should also continue its efforts to make MySejahtera a public health management tool, in line with plans to digitalise the country's healthcare services."

Netizens boycotted MySejahtera in March after learning that a private entity was planning to take over the app:

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