PAC urges MOF and UKAS to study multi-provider fleet management for cost savings and better service compared to the existing single-concession model.
KUALA LUMPUR: The Public Accounts Committee (PAC) has recommended that the Ministry of Finance (MOF) and the Public Private Partnership Unit (UKAS) undertake a comprehensive study to explore more effective alternative management models for government vehicles, including a multi-provider fleet management system.
PAC chairman Datuk Mas Ermieyati Samsudin (pic) said the study should assess the potential for cost savings and improved service delivery compared with the existing single-concession model, which binds the government until 2037.
She said the government should also consider introducing alternative vehicle models to ensure continuity of government transport services should a sole automotive manufacturer unexpectedly discontinue production.
“PAC also recommends that MOF revise the current requirement for replacement vehicles to be supplied within 60 working days under the existing contract and prevailing circulars, so that it better reflects the actual norms and capabilities of the automotive manufacturing industry.
“MOF must also ensure that the digital fleet monitoring system is fully utilised by all user ministries and agencies. The system should generate early warnings on the expiry of vehicle lease periods to ensure that vehicle orders are submitted within the required timeframe,” she told a press conference at the Parliament building here today.
She also said MOF should incorporate the identified improvements into the supplementary agreement with the concessionaire SPANCO Sdn Bhd so that no monthly lease charges are imposed on concession vehicles whose lease period has expired but which have to remain in use by user ministries or agencies due to delays in the supply of new vehicles.
According to her, MOF should expedite the audit and verification of data on the remaining days of supply delays for all user ministries and agencies to enable official letters of penalty claims to be issued to the concession company as soon as possible.
Elaborating further, Mas Ermieyati said PAC today tabled its report on the management of government vehicles under the concession agreement with MOF.
She said the report was prepared following the Auditor-General’s Report 3/2025, which found that the management of concession vehicles was unsatisfactory, including delays in supplying vehicles to the government and delays in replacing vehicles.
