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VEP poser: PAC to summon chief secretary to govt

KUALA LUMPUR: Chief Secretary to the Government Datuk Seri Dr Ismail Bakar will be summoned by the Public Accounts Committee (PAC) over alleged discrepancies concerning the Vehicle Entry Permit (VEP) system between Johor and Singapore.

When met after holding a proceeding with former transport minister Datuk Seri Liow Tiong Lai today, PAC chairman Datuk Seri Dr Ronald Kiandee said Ismail would be summoned following his previous capacity as the Transport Ministry's secretary-general.

Ronald however did not specify the date for Ismail to testify before the committee.

"Apart from the companies involved (in the VEP system), we will summon the current chief secretary to the government, who was formerly the transport ministry's secretary-general.

"(We will complete the proceeding) after all witnesses have been called up.

"Liow will not be summoned for the second time. That matter does not arise. As usual I cannot reveal what had transpired during the proceeding.

"However we are satisfied with the information received from the former minister," Ronald said when met at the parliament at the end of PAC's proceeding today.

Proceedings on the VEP follows the findings of the Auditor-General’s Report 2017 (second series), which questioned the manner on how the system was awarded through direct negotiations instead of open tender.

The audit also found a drastic hike in operational expenditure of the RM149.45 million system.

It was also reported that former prime minister Datuk Seri Najib Razak was given assurance by Liow that the contractors were capable and had the expertise for the project.

However, it was later found that the contractors had only RM35.54 in their bank accounts, instead of the required RM2.3 million.

Following the revelation by the Auditor-General’s Report, the said contractors produced written proof that they had RM3 million in their accounts.

The contractors also gave an undertaking, in which they would bear the cost of the project until the VEP system goes operational two months after its launch.

The audit said the project involved two contracts, Capital Expenditure Contract (Capex), worth RM45.15 million, and Operational Expenditure Contract (Opex), worth RM104.3 million.

Auditors also found that the contractors had sub-contracted the Opex to a third party although they were not allowed to do so.

Other weaknesses found related to the system were that equipment worth RM4.07million, including cameras, barrier gates, fix readers were left uninstalled.

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