10 holes in Khairy’s MySejahtera clarification

 

 The latest information to come out on the MySejahtera scandal is that the company with which the government is negotiating to continue the services of the app, MySJ, agreed to pay RM338.6 million for the rights to the intellectual property associated with the app in October 2020. The intellectual property and software licensing scheme will last for some five years.

According to the report in Code Blue, the app developer is Entomo Malaysia Sdn Bhd (formerly KPISoft Malaysia Sdn Bhd). The information comes from court documents whereby P2 Asset Management Sdn Bhd, a MySJ shareholder, in an action dated Nov 24 last year is suing Entomo, Revolusi Asia Sdn Bhd (another MySJ shareholder) and MySJ for alleged breach of a share sale agreement.

So the government has no plans to sell the MySejahtera app to the private sector, according to Health Minister Khairy Jamaluddin. The latest development predates his statement, but obviously something is terribly wrong.

While Khairy has taken the political stance to refute opposition leader Anwar Ibrahim’s statement that a sale was made, the fact remains that a contract is being directly negotiated for the continued provision of services for the app.

Now, we know why the government is not selling the MySejahtera app - it does not own the intellectual rights to be able to sell it anyway but MySJ is buying it and the government is apparently paying it to buy it from the original developer, now called Entomo, plus of course the usual margin. This is a classic case of middlemen patronage business and politics.

We come to the first hole in Khairy’s explanation.

1. Is the arrangement a scam to avoid direct payment to Entomo for development of the app?

With the latest developments, Khairy has a lot of explaining to do with the information released by the court action blasting away the explanation that the government is not selling the MySejahtera app, giving the misleading impression that it owns the app and the intellectual property associated with it.

A considerable amount of money for the contract will be involved and raise all manner of sticky questions as to data security and what the service providers would do to monetise the valuable data which is in their hands. It’s not just about a sale but who controls MySejahtera. Khairy does not answer the following question satisfactorily.

2. Why was there no open tender and assessment?

The right way to have assessed best capabilities is for an open tender to be announced and invited on a priority basis for speed, delivery and reliability. That way a quick decision can be taken to appoint a developer and ensure that the project was carried out by capable people with a proper track record.

Khairy slyly sidesteps a key question that was raised by an article in online health news portal Code Blue which quoted the Public Accounts Committee (PAC) which investigated the transactions. The PAC said there was no contract with the developer of the app.

3. Why was there no contract with KPISoft for developing the app?

Khairy’s statement says it was a CSR (corporate social responsibility) exercise and involved no payment. Really? Is this the way a government develops a vital app in the fight against the most dangerous pandemic in our lifetime - on a CSR basis? Even so, should there not be a contract which will cover all important details?

Khairy said that the CSR exercise was for a period of one year from March 27, 2020, to March 31, 2021. “The government decided on March 31 that the MySejahtera services will continue.” Which takes us to the next hole.

4. What are the terms for the continuation?

By now, a year after the expiry of the arrangement, the terms for the extension of the arrangement should be known. Surely no private sector person is going to be so altruistic that he provides the services for free.

According to a news report on Dec 1 last year, the PAC had said, “The PAC is of the view that the CSR concept has been used as a mechanism to secure government projects without undergoing the procurement due process.” Which brings us to the next hole.

5. Is the CSR initiative being used to get a contract?

Khairy did not address the issue of similar or same parties getting a contract for the provision of additional services following the expiry of the initial CSR initiative which expired on March 31 last year. Thus, he made no comment on allegations that the CSR concept was used to get a contract. He should have.

According to the Code Blue report, KPISoft was appointed to develop the MySejahtera app by the National Cyber Security Agency (NACSA) under the Prime Minister’s Department, and not by the Ministry of Science, Technology and Innovation (of which Khairy was the minister then) or the Covid-19 Immunisation Task Force. Which leads to hole No 6.

6. The original appointment was made by the PM’s Department. Why?

Since the My Sejahtera app was a very key element in the control of Covid-19 by monitoring and tracing those with Covid-19 and their contacts, it should have been under the purview of the Health Ministry which can vet and choose all possible candidates.

Khairy said in his statement that the Health Ministry was given the go-ahead by the government to set up a price negotiation committee to negotiate the price for the extension of the MySejahtera app for a further two years on Nov 26, 2021. Which leads to hole 7.

7. Why eight months before the go-ahead for price negotiation?

Eight months after expiry is a long time for the government to issue price negotiation instructions. In fact, it should take place months before the expiry of the contract.

Such negligence is especially telling when the MySejahtera app is the only one that is used to monitor Covid-19 spread with public participation.

8. Are the parties for the new contract related to the previous ones?

This seems to be the case as some originators of the app are also listed as shareholders/and or directors of MySJ, although there are serious disputes as the court case suggests. But what is surprising is the emergence of prominent people as shareholders and directors of MySJ.

According to the Code Blue report, MySJ directors include Eco World Development Group Bhd (EcoWorld Malaysia) executive chairman Liew Kee Sin and executive director and chief financial officer Heah Kok Boon, alongside Sapura Energy Bhd founder and former chief executive officer Shahril Shamsuddin.

Also on MySJ’s board of directors is Bersatu disciplinary board chairperson Megat Najmuddin Megat Khas, who currently also serves as non-executive chairperson of Sime Darby Plantation Bhd and recently-listed Farm Fresh Bhd. Khairy offers no explanations.

9. Why are people with no expertise in the area’s major players?

It appears that they are involved in flipping the app to the government for a profit after purchasing the intellectual property associated with it for RM338.6 million.

This raises the question of whether the new company will have the ability to take the MySejahtera app further or will have to start from scratch by getting new expertise.

10. Is this another money-making scheme involving corruption and patronage?

We don’t expect Khairy to answer the question honestly but it is a question that has to be asked. Looking at the sequence of events, it looks like it is.

Malaysians are sick and tired of these money-making schemes which even try to exploit difficult situations facing the nation for just a few bucks. Those who are involved are traitors in every sense of the word and the full weight of the law should be brought upon them.

The best way to have done this is to invite open tenders and choose the best candidate based on an objective evaluation by a panel of experts. The government will own the app and have full control over it, and pass the administration to government servants over time. Simple!

But we all know one thing for sure - this government won’t do that and why it won’t do so. - Mkini

P GUNASEGARAM, a former editor at online and print news publications, and head of equity research, is an independent writer and analyst.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.