PAC Report: MySejahtera Developed Without Contract, App’s Ownership Unclear With New Company

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After receiving MOF approval for direct negotiations with MySJ Sdn Bhd – with totally different administrators and shareholders from KPISoft – MOH is now contemplating whether or not to purchase all the MySejahtera system or MySJ’s software program companies.

KUALA LUMPUR, March 26 – Although the federal government claims to personal MySejahtera, Parliament’s Public Accounts Committee (PAC) reveals that the Covid-19 app was truly developed and not using a contract with the corporate that created it.

A Cabinet assembly on November 26 final 12 months accredited, in precept, direct negotiations to nominate a brand new firm, MySJ Sdn Bhd, that had obtained the MySejahtera “system” developed by KPISoft Malaysia Sdn Bhd, Finance Ministry authorities procurement division deputy secretary Rosni Mohd Yusoff instructed a gathering final March 8 between the PAC and senior officers from the Ministry of Finance (MOF), the Ministry of Health (MOH), and the Ministry of Science, Technology and Innovation (MOSTI).

This is topic to due diligence procedures by MOH to confirm that the brand new firm is a “valid” celebration that had developed the MySejahtera system, in keeping with MOH deputy secretary-general (administration) Harjeet Singh Hardev Singh.

Based on the Cabinet’s resolution, MOF then gave approval to MOH to conduct negotiations with MySJ, stated Rosni, in keeping with a Hansard of the March 8 PAC assembly printed within the PAC’s latest Covid-19 Vaccine Procurement report that was tabled in Parliament Thursday.

“All this time, when the development of the system was being administered by the National Cyber Security Agency (NACSA) or the National Security Council (NSC), there was no proper contract with the company. So, there is no contract,” MOF’s Rosni instructed the PAC.

“So, once we deliver to the Cabinet to repair it when it comes to the procurement course of and the like, when it goes to the Finance Ministry and when the Health Ministry agrees to take over the MySejahtera software, which means it’s as if the Health Ministry has to begin the preliminary course of yet again, that means when it comes to prices, when it comes to the standing of the corporate from KPISoft Sdn Bhd that has modified to MySJ Sdn Bhd.

“This means we need to check from that angle and we need to renegotiate the development costs for this MySejahtera app.”

Harjeet stated the Health Ministry’s negotiations with MySJ haven’t begun but because it had solely simply obtained approval from MOF for direct negotiations.

The assembly transcript confirmed that each MOF’s Rosni and MOH’s Harjeet have been unsure concerning the standing of MySJ – with Harjeet initially believing that MySJ was only a new identify for KPISoft.

When Harjeet stated MOH wanted MySJ to indicate proof that it was the identical firm as KPISoft and that it had developed the MySejahtera system, with only a identify change, PAC chairman Wong Kah Woh questioned why this might take 4 months since such checks would solely take 10 minutes.

During the assembly itself, Wong received his workers to do a search on the Companies Commission of Malaysia (SSM), revealing that KPISoft Malaysia Sdn Bhd’s identify was modified in May 2020 to Entomo Malaysia Sdn Bhd. Entomo Malaysia’s administrators are Rekha Mani and Yogaraj Thuraisingam.

MySJ Sdn Bhd, however, was included in September 2020. Its board of administrators embrace Eco World Development Group Bhd (EcoWorld Malaysia) government chairman Liew Kee Sin and government director and chief monetary officer Heah Kok Boon as administrators of the corporate, alongside Sapura Energy Bhd founder and former chief government officer Shahril Shamsuddin.

Also on MySJ’s board of administrators is Bersatu disciplinary board chairman Megat Najmuddin Megat Khas, who presently additionally serves as non-executive chairman of Sime Darby Plantation Bhd and just lately listed Farm Fresh Bhd. Raveenderen Ramamoothie and Anuar Rozhan are administrators on MySJ’s board as nicely.

“The shareholders are also not the same as KPISoft Sdn Bhd,” stated Wong.

“It looks like these two companies are not just different entities, but completely different ownership. They are not from the same people. So what I can conclude, or at least I can guess here is that KPISoft Sdn Bhd has sold all rights and interests in the MySejahtera application to a company named MySJ Sdn Bhd.”

Who Owns The Data?

Government officers on the PAC assembly didn’t verify what precisely was transferred from KPISoft to MySJ, when or how this occurred, or if something was even transferred within the first place.

It was additional unveiled, within the PAC report, that the federal government’s company social accountability (CSR) cope with KPISoft would solely final for a 12 months from March 27, 2020, till March 31, 2021. The authorities had determined to pay for MySejahtera companies from April 1, 2021, when the settlement lapsed.

Rosni instructed the PAC that MOF has accredited RM9.317 million for third-party funds to be used of the Google Maps API and SMS prices associated to the MySejahtera app.

Harjeet stated the one funds that the federal government has made for MySejahtera have been for SMS prices and use of the Google Maps API, apart from different miscellaneous objects, not for improvement of the system.

Dr Mahesh Appannan, senior principal assistant director of MOH’s illness management division, instructed the PAC that KPISoft is “still a vendor designated to develop all MySejahtera modules.”

“It still is, but all governance that will look at the development of MySejahtera is from various agencies, including Mampu, NSC, MOSTI, and also MOH.”

He additionally stated MOH “has been the owner of all data” from “day one”, whereas NACSA controls cyber safety over the MySejahtera app.

“They look at all our data acquisition, our data extraction to access and what not with the permission of our Director of Disease Control.”

When PAC member Azizah Mohd Dun requested who was presently managing MySejahtera, Dr Mahesh replied: “We only use the platform provided by the said company. All of the data management, module management, and the like are under the Ministry of Health together with the technical committee comprising various agencies.”

The MySejahtera app receives about 30 million check-ins at premises day by day and sends out as much as 300,000 informal contact notifications per day on common, in keeping with Dr Mahesh. All check-in knowledge is archived after 30 days and destroyed after 60 days.

MySejahtera has 38 million registered customers so far, stated Harjeet, together with travellers. The app has greater than 10 modules that have to be improved on occasion, he added.

MOH Mulls Buying Entire MySejahtera System Or Services

Harjeet instructed the PAC that MOH is deliberating between buying all the MySejahtera system to “take full control” or to purchase software program companies from MySJ, echoed by Dr Mahesh who stated the procurement may very well be a “buy over process” or for software program service modules.

“This is one of the methods that we’re looking at during negotiations on which will make economic sense and also in terms of implementation in the future,” Harjeet stated.

The MOH official added that negotiations want to have a look at the most effective mannequin for procuring the system, declaring that if the ministry have been to buy all the MySejahtera system, then it should work out who will function and keep the system.

Dr Mahesh defined that MOH first received the concept in March 2020 for digital strategies to handle the Covid-19 pandemic. At that point, MOH obtained about 11 proposals from varied firms on digital options.

Then, on March 20, 2020, a sub-committee was arrange by MOH along with different companies that noticed the formation of a Digitalisation Covid-19 Committee chaired by the NSC, the place all associated proposals have been introduced in for dialogue with different companies.

“Besides all of MOH’s needs, we also took into account how fast we could deploy a system that we could use as soon as possible. Following that, we selected the vendor, KPISoft Sdn Bhd. So, we went through a rigorous process of choosing the actual vendor to develop our application currently,” Dr Mahesh instructed Wong.

The Problem

PAC chairman Wong, who can also be Ipoh Timur MP, instructed the assembly that the issue was that KPISoft obtained the MySejahtera undertaking for a year-long CSR effort that led to April 2021.

Because it was a CSR effort, the federal government didn’t need to pay KPISoft throughout that one 12 months and the corporate received the undertaking that bypassed the conventional procurement course of, the place a contract of greater than RM200,000 or RM400,000 must be completed by way of open tender, until accredited by the finance minister.

“So now here, the problem is that when this contract was first given to KPISoft Sdn Bhd. Now suddenly another company comes in to take over the whole application; is it appropriate and necessary for the Cabinet to solely appoint MySJ Sdn Bhd through direct negotiation?” Wong questioned.

“So, that is a very big question. When we are talking about, we are going to pay— I mean pay for the apps for MySejahtera for a certain period of time, this could represent a huge contract.”

Wong acknowledged that MOH instructed the assembly it will conduct due diligence, however acknowledged the PAC’s stand in opposition to the appointment of a brand new firm by way of direct negotiation, saying that if MOH wished to offer the contract to firms aside from KPISoft, then MOH ought to observe set procurement procedures – whether or not direct negotiation with approval from the finance minister, or primarily based on talent or contract worth by way of open tender or quotations.

“Please keep in mind the procurement process must be straightly [sic] adhered to and naturally, KPISoft Sdn Bhd, from day one if they’re a doing it as a CSR, they shouldn’t be charging and if they’re charging additionally and if we permit them to cost additionally, they shouldn’t be promoting the MySejahtera system to a different firm.

“And now the government is telling us, look we are getting another company to manage, we are going to go by direct negotiation and so on. Of course, everyone in the business, they want to make money, yes, but what kind of process that we need to go through, that is something very, very important in the eyes of PAC.”

Wong additionally pressured on the PAC’s advice in its previous Covid-19 vaccine procurement report tabled in Parliament final December that the federal government take over operations of MySejahtera with out extra prices, because the app has already turn into a part of the nationwide well being care system.

He questioned whether or not MOH was able to take over MySejahtera now that KPISoft is not within the image.

“Why should we just allow the company just sell the apps to another company and to ensure the other company get the business and get the contract. That shouldn’t happen lah. To me, I’ve said in Parliament if you want to get a government contract don’t go through the backdoor way.”

The Covid-19 vaccination certificates on the MySejahtera app is recognised by different nations, together with Singapore, permitting folks to journey abroad quarantine-free as extra international locations reopen.

Presumably, MySejahtera has greater than 27 million digital Covid-19 vaccine certificates, primarily based on CovidNow’s statistic of 27.4 million folks within the nation who has obtained a minimum of one Covid-19 vaccine dose. More than 23 million adults aged 18 and above have been inoculated with a minimum of one dose.

Besides Covid-19 vaccination certificates and appointments for coronavirus inoculation, MySejahtera – which incorporates customers’ private particulars like identify, IC quantity, and cellphone quantity or e mail tackle – is used for contact tracing, reporting optimistic take a look at outcomes, self-health assessments for Covid-19, and to show one’s Covid-19 danger standing.

Public premises typically solely allow entry to completely vaccinated folks and people with low danger for Covid-19, as indicated on MySejahtera.

Health Minister Khairy Jamaluddin reportedly stated earlier this month that MOH was contemplating utilizing MySejahtera for Malaysians to sign up as organ donors.

MOH’s illness management division instructed a discussion board organised by the Galen Centre for Health and Social Policy final October that the ministry was contemplating increasing the usage of MySejahtera past Covid-19 to monitor non-communicable diseases (NCDs), together with most cancers.

MySJ Directors And Shareholders

SSM information obtained by CodeBlue present that MySJ, which was included on September 23, 2020, is backed by a number of outstanding native company figures.

Besides Liew and Heah from property developer EcoWorld; Shahril, former CEO of oil and fuel firm Sapura Energy; and Megat, chairman of palm oil producer Sime Darby Plantation, MySJ’s two different administrators are Raveenderen and Anuar – who, in keeping with an NSC statement in July 2020 – have been shareholders and founders of KPISoft then.

MySJ’s share capital is RM35,528,732.

Its largest shareholder is Revolusi Asia Sdn Bhd, with 28.93 million shares. Revolusi Asia was included on September 17, 2020, simply six days earlier than MySJ was included, with Shahril, Raveenderen, and Naveen Pralhad Deshpande named as administrators.

Raveenderen has the most important variety of shares in Revolusi Asia at 26.6 million shares. Anuar, although not listed as an organization director, owns 4.2 million shares in Revolusi Asia. Naveen owns 4.2 million shares.

MySJ’s second largest shareholder is Hasrat Budi Sdn Bhd, with 3.57 million shares. Hasrat Budi was included seven months in the past on August 23 final 12 months, with EcoWorld Malaysia’s Liew and Heah named as administrators. Property developer EcoWorld Malaysia is the only real shareholder of Hasrat Budi.

P2 Asset Management Sdn Bhd is MySJ’s third largest shareholder, with about 2.5 million shares. Checks on SSM present that the corporate was included on November 3, 2020, with Johor Bahru-based Yap Zi Jing listed as an organization director, together with 29-year-old Johnathan Jaya-Sudhir and 26-year-old Gregory Jaya-Sudhir, who’re additionally primarily based within the southern state.

Ganesan Shanmugam owns the remaining 528,632 shares in MySJ.

KPISoft Malaysia Sdn Bhd, which was included on June 21, 2005, modified its identify to Entomo Malaysia Sdn Bhd on May 20, 2020.

Entomo Malaysia’s administrators are Rekha and Yogaraj; Anuar and Raveenderen usually are not listed on the board of Entomo Malaysia. The firm’s sole shareholder is Entomo Pte Ltd.

According to Entomo Malaysia’s website, which describes the corporate as previously KPISoft, Entomo affords options to enhance enterprise and organisational efficiency. Raveenderen is founder and group CEO of Entomo.

Both MySJ and KPISoft Malaysia share the identical registered tackle at Wisma Adiss Udarama Complex in Kuala Lumpur and the identical enterprise tackle at Q Sentral within the capital metropolis.

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