The Malaysian Ministry of Transport (MOT) awarded contracts for motor vehicle inspection services to 12 new companies, sparking controversy due to their apparent lack of experience. The MOT defended its decision, emphasizing the selection process was based on financial stability and adherence to established procurement procedures. The ministry outlined stringent requirements for the selected companies, including financial thresholds, licensing, and standards compliance. Conditional approvals were granted, requiring firms to meet operational readiness standards within two years before receiving full licenses.
– which apparently had either only been recently incorporated or had no experience in vehicle inspections – were awarded contracts. The said ministry has now come out to explain its selection process, insisting that it was based on financial stability.
It added that the selection of companies were based on the guidelines set under the Road Transport Act 1987 , including eligibility requirements, procedures, regulations and standards that can be found on the MoT and road transport department’s websites since April 23. They must also obtain a standards compliance certificate from the standards department within two years of the offer date, provide a minimum five per cent deposit or bond from their working capital, obtain an approved facility certificate from the environmental department before licensing, and be registered as a member of the International Motor Vehicle Inspection Committee within two years of the date of licensing.
It added that since 1994, Puspakom had hitherto been the only company mandated to conduct vehicle inspections under the Road Transport Act 1987. As such, no other companies could have had the experience in carrying out Puspakom’s functions before.
MALAYSIA MINISTRY OF TRANSPORT VEHICLE INSPECTIONS PROCUREMENT CONTRACT AWARDS
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