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.


