Appointment of KPISoft (Entomo) as MySejahtera’s developer does not follow procedures - PAC

KUALA LUMPUR - The appointment of KPISoft (Entomo) as the MySejahtera application developer in March 2020 is found to be irregular and not following government procurement procedures.

The decision was among the eight summaries made by the Public Accounts Committee (PAC) following the presentation of the MySejahtera Application Development and Procurement Report under the Health Ministry, Finance Ministry and the Prime Minister’s Department in Parliament on Tuesday.

PAC Chairman Wong Kah Woh said the election did not have any minutes or documents to support the existence of the appointment.

He said the only document that existed was a non-disclosure agreement (NDA) that was signed by the National Security Council (MKN) which represented the government with KPISoft.

“The second summary was the concept of corporate social responsibility (CSR) suggested by KPISoft (Entomo) which caused the government to have an unclear objective towards the acquisition of MySejahtera application.

“The CSR concept was seen to be used as a mechanism to gain the government project without going through the necessary procedures.

“The fourth finding revealed that MySejahtera Development Company suggesting for the application to be commercialised, this showed the potential of the application as a national and valuable application,” he said in a statement on Tuesday.

Wong said the other summary obtained was that the MoF had set the ceiling price of RM196 million to obtain MySejahtera for two years (RM98 million a year).

The amount was high and went against their CSR concept.

“The government obtained it and was given their guarantee that the data within the MySejahtera application was safe and would not be misused, but KPISoft had made a certificate showing the intellectual property (IP) would be owned by MySejahtera.

“The government had not registered the IP for MySejahtera under MyIPO that could cause the application to be claimed by the owner which was the developer,” he said.

He said the last summary was the acquisition, development and operations of the MySejahtera application could be implemented by the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) which obtained the expertise and capabilities as a Government ICT Technical Department.

The Ipoh Timur MP said the PAC also recommended four improvements for the government to implement in the future.

Among the changes was to ensure that the government would need to review the propriety of awarding MySejahtera application contract through direct negotiation made through a council of Ministers dated on Nov 27, 2021.