KUALA LUMPUR, March 6 — The Public Accounts Committee (PAC) has found irregularities in the Home Ministry’s (KDN) issuance of the letter of acceptance before finalising the terms and procurement method for the Foreign Workers Centralised Management System (FWCMS).
These findings emerged from three proceedings on the matter, which were held on December 10, last year, as well as on January 21 and February 3.
PAC chairman Datuk Mas Ermieyati Samsudin said KDN failed to finalise the agreement due to disputes over the service charges imposed on employers from April 1, 2018, until the contract ended on May 31, 2024, as stated in the letter of acceptance.
"The government's failure to uphold the signed letter of acceptance and finalise the contract before its expiry has exposed it to legal action by Bestinet, which is seeking RM1.57 billion in damages," she said in a statement today.
As a result, Bestinet submitted a new claim for a collection fee of RM230, forcing the government to negotiate the rate.
Ultimately, a revised rate of RM215, compared to the initial rate of RM100 stated in the letter, was agreed upon, as well as a six-year contract extension until January 31, 2031.
“Referring to the agreement signed on September 3, 2024, the RM215 collection fee comprises RM130 for recovery costs from 2018 to 2024 and RM85 for operating costs from 2025 to 2031, including equity and operational expenses," Ermieyati said.
To address issues in the FWCMS procurement process, the PAC recommends that KDN clarify the RM215 collection mechanism and payment method to Bestinet, as finalised and approved.
KDN must outline the best approach to optimising FWCMS until 2031, given that the National Integrated Immigration System is expected to be completed by 2028.
It recommended the ministry also strengthen cybersecurity measures, including system and data security, as FWCMS is managed by Bestinet.
The public can download and review the PAC’s report on the FWCMS procurement at www.parlimen.gov.my/pac.
— Bernama
