PAC suggests govt look into multiple suppliers for vehicle fleet

Public Accounts Committee says Putrajaya must also expedite the audit of data on delayed deliveries so that an official penalty notice can be issued to Spanco.

PAC chairman Mas Ermieyati Samsudin said a comprehensive study should be held to evaluate the effectiveness of such a model as an alternative to the current system.

“This study should evaluate the potential cost savings and effectiveness of service delivery compared to the existing single-concession model, to which the government is tied until 2037,” she said in a statement.

This follows PAC’s proceedings over issues related to the management of government vehicles involving concessionaire Spanco Sdn Bhd.

In November, the Auditor-General’s Report said the management of government vehicles under the Spanco concession was unsatisfactory, with an estimated RM54.51 million in uncollected penalties for late delivery.

The report said that as of Dec 31, 2024, 6,028 vehicles had been delivered between one and 508 days late, exceeding the stipulated 60-working-day period.

The government also incurred an additional RM28.79 million in costs as it was forced to use leased vehicles beyond the lease period, due to the delayed delivery by Spanco.

Mas Ermieyati said the government should not be charged for leasing concession vehicles beyond their lease period if it was forced to do so due to the late delivery of new vehicles by the concessionaire.

She said this term should be added under a supplementary agreement with Spanco to avoid burdening the government with unnecessary additional costs.

“The finance ministry needs to expedite the audit and verification of data concerning delayed deliveries so that an official penalty notice can be issued to the concessionaire as soon as possible,” she said.

The Masjid Tanah MP added that the Treasury should amend the existing 60-day requirement to replace vehicles under the current contract.

She said this term must be aligned with the industry’s current capabilities, accounting for factors such as the customs processing period, vehicle registration, installation of specific equipment, and geographical factors in delivering vehicles to agencies in Sabah and Sarawak.

This is to avoid imposing unnecessary penalties on the concessionaire, Mas Ermieyati said.