In a follow-up report tabled in Parliament today, PAC found that key contract terms, including the fee structure, were not finalised despite the home ministry issuing a letter of acceptance in 2018.

“Bestinet’s RM1.57 billion claim was based on lost revenue (RM1.32 billion) and interest (RM252 million) that it should have collected through FWCMS from April 1, 2018, to May 31, 2024,” PAC chairman Mas Ermieyati Samsudin said in a statement today.

She said this led to Bestinet submitting a revised claim of RM230 per worker, leading to negotiations where the government settled on RM215 per worker — more than double the RM100 in the original agreement.

The deal also included a six-year contract extension until Jan 31, 2031, she added.

“The collection fee of RM215 is based on RM130 for recovery from 2018 to 2024 and RM85 for operational costs from 2025 to 2031, including equity costs and other operational expenses.”

Last November, Mas Ermieyati said PAC would commence proceedings regarding the home ministry’s procurement of the FWCMS.

In June that year, Putrajaya confirmed that it had extended the contract of controversy-plagued Bestinet to provide IT systems for the recruitment of foreign workers.

This was despite the 2022 Auditor-General’s Report, released the following year, revealing that there was no signed agreement between the government and Bestinet, meaning that Putrajaya’s rights were unclear.

Bestinet previously had a six-year contract with the home ministry to develop, supply, provide and maintain the FWCMS, which ended on May 31, 2024.

To prevent further issues, Mas Ermieyati said PAC had urged the home ministry to clarify the fee collection mechanism and payment methods for Bestinet as well as optimise the use of FWCMS until 2031.

“The home ministry must enhance cybersecurity measures, including system and data protection, as FWCMS is managed by Bestinet.

“The government must fully comply with procurement procedures and all existing and enforced government regulations,” she said.