PAC chairman Mas Ermieyati Samsudin urged the works ministry and Malaysian Highway Authority (LLM) to conduct a thorough cost-benefit analysis before proceeding with the RM3.46 billion project.

She said this was one of six key recommendations made by the committee following its proceedings on the implementation and management of MLFF, which began in February last year.

Under the MLFF system, all exit and entry points on highways will be converted into barrier-free lanes to reduce congestion and ease traffic flow.

The system is part of the Malaysian ITS Blueprint (2019-2023), designed to modernise the country’s highway infrastructure.

According to Mas Ermieyati, PAC found that the appointment agreement for the project was signed with KJS-SEP Synergy JV on Nov 17, 2022, during the caretaker government period.

FMT reported last year that the move was opposed by the Association of Highway Concessionaires Malaysia, as it was against the agreements to offer a concession to a third party over their existing ones.

Mas Ermieyati said high-impact agreements should not have been signed during the tenure of a caretaker government.

“As an immediate step, LLM and highway concessionaires must enhance toll collection efficiency at existing toll plazas,” she said in a statement today.

She also said the works ministry should have clarified and finalised the MLFF implementation roadmap before the appointment agreement expired on Dec 16, 2024, and consulted the finance ministry and the public private partnership unit to determine the best procurement method.

“Implementation of MLFF must not impose financial burdens on the government or toll users,” she said.

Works minister Alexander Nanta Linggi previously said the ministry is refining the implementation method for the MLFF system before presenting it to the Cabinet.