“It cannot be denied that the electronic government concession service project, or e-Services, helps the government to expand the delivery of services to the people but its objectives have not been fully achieved.

“But the delay in finalising the agreement has resulted in the payment of service charges outside the agreement amounting to RM73.43 million made through special exception approval.

“Poor management of agreements also caused late remittance of revenue amounting to RM38.94 million in JPJ and RM252.01 million in JIM into the government account, resulting in the revenue not being accounted for according to the time frame.

“The penalties amounting to RM1.56 million payable to JPJ have also yet to be settled by the service companies,” it said.

Apart from that, the report also revealed that 10,726 unsuccessful application transactions involving RM19.74 million were still kept in the bank accounts of service companies.

The report said a total of 7,586 motor vehicle licence renewal transactions amounting to RM0.69 million were made from September 2021 to March 2022 through identity document kiosks that were not deactivated despite an agreement not allowing such renewals in Sabah and Sarawak.

The auditor-general recommended that JIM speed up the process of finalising the additional agreement to prevent payments outside the agreement from recurring.

“JPJ and JIM need to ensure that payment collection and remittance procedures are clear and in order so that government revenues can be managed well and efficiently.

“Remittances must be made within the set time frame so that government revenues are accounted for immediately.

“Penalties must also be imposed on service companies within the appropriate time frame,” the report read.

It added that JPJ and JIM also needed to ensure the security of data entered by users on the service company’s portal to avoid the risk of misuse and leakage of personal data.