Puspakom, the entity which inspects vehicles for road-worthiness, has been granted a 15-year extension of its concession by the government.
That’s not all. The government has also agreed to revise the company’s rates and to award it another concession for the mandatory inspection of second-hand vehicles prior to transfer of ownership.
The Edge business weekly has expressed concern about the 15-year extension. The paper said the government should have reviewed Puspakom’s track record in carrying out inspections since 1994 -and considered some of the bad press it has received – before granting the extension.
The government will only review the company’s performance at five-year intervals. Puspakom made a net profit of RM18 million from turnover of RM76 million for its 2007 financial year. By the time the government reviews its performance in five years’ time, the company could have raked in a further RM90 million or so, The Edge noted.
One of the main reasons for the concession extension is that the company had invested in 19 more inspection centres, largely in Sabah and Sarawak. “Awarding a money-spinning concession based on a company’s willingness to set up inspection centres in remote areas at a cost of RM3.1 million is not a move in the direction of good governance,” said the business weekly in its ‘Frankly Speaking’ column. Indeed.
Contrary to widespread perception, Puspakom is not a government entity, but a monopoly business 100% owned by DRB Hicom. The major shareholders of DRB Hicom (as at 24 July 2007) are Etika Strategi Sdn Bhd (Syed Mokhtar Shah Syed Nor deemed to have an indirect interest) (15%), EPF (17%), and Khazanah (10%).
The information about Puspakom being granted an additional concession to inspect second-hand vehicles is contained in DRB Hicom’s Annual Report for 2007. For the year ended 31 March 2007, Puspakom inspected 2.4 million vehicles. The additional concession would enable it to hit around 2.7 million inspections for the 2008 financial year. An instant increase in profits!
This report from Bernama:
Puspakom Gets 15 Year Contract Extension
KUALA LUMPUR, July 10 (Bernama) — The government has extended the concession contract of Puspakom Sdn Bhd for another 15 years effective Sept 1, 2009, the Dewan Rakyat was told today.
Deputy Transport Minister Datuk Seri Lajim Ukin said the decision was made after considering various factors including initiatives undertaken by Puspakom, the Computerised Vehicle Inspection Centre, to improve services.
“They include extending operating hours at several vehicle inspection centres and a customer friendly payment system via the drive-in counter.
“For the new contract, the government reserves the right to review Puspakom’s performance once every five years. The contract can be terminated if it fails to provide satisfactory service,” he said during winding-up debate on the Mid-term Review of the Ninth Malaysia Plan (9MP) here, Thursday.
Puspakom had also invested in 19 new inspection centres of which 18 were in the remote areas of Sabah and Sarawak with the other in Bukit Katil, Melaka.
The 18 inspection centres were built at a cost of RM3.1 million with operating cost of RM1.9 million annually….
How would you rate Puspakom's performance in inspecting motor vehicles?
- Bad (55%, 244 Votes)
- Poor (28%, 127 Votes)
- Average (11%, 48 Votes)
- Not sure (4%, 20 Votes)
- Good (1%, 4 Votes)
- Excellent (1%, 3 Votes)
Total Voters: 446
BN! Continue suck our blood!
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There is a BIG VERY BIG difference if Pakatan and DSAI comes to power vs the current BeeEnd power structure and you should highlight it in your blog.
If DSAI ever comes to power, people should not worry, because DAP and PAS comes to power also as EQUAL partners. Lim Kit Siang and Tok Guru will not just let DSAI do as he wants.
This will truly be a check and balance govt. Likewise , PAS cant do as they want without angering DAP and also DAP cant do as they want without angering PAS. Because if any of the 3 walks out of Pakatan, Pakatan Rakyat will fall as the Govt. So , all 3 parties work together!
That is the difference vs DSAI 10 years ago when he was in BeeEnd.
In BeeEnd, everybody knows Badawi and Najib can do as they want. UMNO rules BeeEnd as Superme King. All the rest, MCA, MIC, Gerakan etc etc etc are just running ….! That is why you have corruption galore!
That is the real difference between a Pakatan Rakyat Federal Govt and the current corrupt govt we have.
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Will be interesting to know the shareholders behind Puspakom…
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Inspection by Puspakom was also required for transfer of number plate number. The transfer is for the number only why the car need to be inspected beats all comprehension.
Is Puspakom just a money making machine for ????
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Another 15 years of shear agony for the transport industry. I really feel sorry for them.
Corruption is (allegedly) rampant in JPJ and Puspakom.
Want evidences, go to the ground and disguise yourself as a lorry driver, Mr. Ong Tee Keat!
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The only way to stop such a gravy train is to first change the policy maker’s. Such easy money for this type of business is God sent, who will not want to be part of it ? This type is regulated business and comes with a high profits and guarantee no risk and lost. I believe there are more efficient way of doing such inspection rather than people waiting queue for long hours everyday at all those centres just to get a certification for the eventual transfer of vehicle ownership.
Mind you, the waiting can be for hours if you are not an early bird but the real inspection may just be 5 minutes if your vehicle is fairly new. They will just look out for ‘ kereta potong ‘ and of course the routine chasis number, engine number etc. are all done in mere minutes.
While easy cash falls on the lap of those with the right connection, there are no real responsibility here. I’d a friend who had a case with police just because of buying suspected ‘ stolen car ‘ and the irony of it is that this vehicle was cleared by Puspakom and ownership transfer was in order. He was using it for a few years until one day at a road block, the police told him to report to the police station with his vehicle. Subsequently, the vehicle was detained for court case against some suspects but it has been many years now and vehicle left to rot at police depot waiting for case hearing.
Note that Puspakom and JPJ had cleared ownership transfer during the initial stage and now buyer got stuck in such a no win situation. Can the buyer sue both Puspakom and JPJ for lost of vehicle and lost of usage for years now ? Any legal mind out there care to advise as I’m sure there maybe many people in this mess.
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Agree, another 15 years of (allegedly) fleecing the motorist.
We are already suffering from petrol hike, inflation, are they not bad enough???
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They have to continue with the concession. that is one of the way to redirect their ill-gotten resources.
That’s not all. The government has also agreed to revise the company’s rates and to award it another concession for the mandatory inspection of second-hand vehicles prior to transfer of ownership.
Another gold mine for them and who will suffer more?
Times Are Bad, Politicians Are Bad And The Government Is Bad
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FIL-SIL regime is unable to give up its rent-seeking ways.
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I have to waste one day at puspakom just to get my car checked. Set up 2 other competitors. UMNO likes monopoly.
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Puspakom is a … blood sucking by the BE ENED to make their … cronies richer and the Rakyats poorer.
Come on PR, takeover now by hook or by crook because if you don’t do it now, it’s too late to wait for GE13. Heard of the song by Elvis: “IT’S NOW OR NEVER”
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Business as usual.Why destroy a cow that is producing good milk? What else?
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kindly assist me with contacts details for Puspakon Motor Vehicle Inspection Center I wish to communicate with the Executive Director. I am in Zambia, Lusaka.
Thank you
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