KUALA LUMPUR: The Centre to Combat Corruption and Cronyism (C4 Centre) has raised serious concerns about alleged cartels within Puspakom and called for immediate investigations by the Malaysian Anti-Corruption Commission (MACC) and the Malaysian Competition Commission (MyCC).
Yesterday, Transport Minister Anthony Loke announced that his ministry would collaborate with MACC to investigate integrity issues at Puspakom.
He also said the Transport Ministry was aware of the existence of "runners" and cartels within the centre.
"The comments made by the transport minister are deeply concerning and warrant further investigation by regulatory and enforcement agencies," said C4 Centre chief executive officer Pushpan Murugiah.
Pushpan highlighted the structural vulnerabilities in monopolised entities.
"Regrettably, the formation of cartels within rubber-stamping entities is not uncommon in Malaysia.
"This underscores the urgent need to review monitoring and oversight mechanisms for such organisations."
He added that cartels and crony networks emerge when oversight fails, particularly in monopolistic structures where closed communication networks can thrive.
While endorsing the government's decision to open the vehicle inspection sector to additional companies, Pushpan cautioned against potential pitfalls.
"Opening up the sector to other companies can reduce the prevalence of cartels. However, this can be achieved only if the licensing procedure is fair, transparent and accountable."
Nevertheless, Pushpan said, there was a need for robust regulatory frameworks and enforcement to prevent new cartels from emerging.
Transparency International Malaysia president Dr Muhammad Mohan Kittu Abdullah welcomed the Transport Ministry's decision to license more companies for vehicle inspections, describing it as a step towards ending Puspakom's monopoly and fostering a competitive market.
"This move is expected to improve service quality and efficiency, as competition often drives companies to perform better to attract customers," he said.
However, Mohan echoed concerns about the risk of new cartels forming.
"We believe the ministry is aware of these risks and is collaborating with MACC to address integrity issues and prevent the formation of cartels."
Mohan said the ministry must ensure strict regulations and oversight are implemented.
"By implementing strict regulations and oversight, the ministry can ensure that the new system remains fair and transparent."
He added that accountability and transparency were crucial in reporting both successes and failures.
"While the decision has the potential to bring positive changes, its success will largely depend on effective regulation and enforcement to prevent any misuse of the system."
On Monday, a surprise Road Transport Department inspection at the Wangsa Maju Puspakom centre uncovered an unsafe vehicle that had passed inspection. Officers also found several lorries with unsafe retread tyres awaiting inspection.
Two Puspakom staff members were questioned for allegedly approving a vehicle that was later deemed unsafe by the department.