MYEG (0138) - MYEG: Why outsource govt service to Umno-linked company?

Home Minister must explain why Immigration Department has outsourced foreign worker permit renewal function to private firm.

IPOH: The Opposition will be writing to the Home Minister Ahmad Zahid Hamidi, on behalf of the public, to seek a reasonable explanation for the decision to outsource the foreign worker permit renewal function to a private firm.

Taiping MP and DAP Perak Chairman Nga Kor Ming, who will be undertaking the task, has four big questions for the Home Minister:

    Why outsource government service to a private company?
    Why no open tender when awarding this lucrative contract?
    Why is RHB Insurance the sole insurer?
    Why do the people need to pay MyEG for services which were previously provided free of charge by the Immigration Department?

“If Putrajaya insists on outsourcing one of the functions of the Immigration Department, it should be the Immigration Department which should be paying MyEG, not the people,” said Nga. “Otherwise, the people would end up paying double.”

The people are paying taxes and deserve to enjoy the service from government agencies, he added. “There is absolutely no excuse to force the people to pay a private company for a service which should be provided by the civil service.”

Worst still, he charged, this lucrative contract has been directly awarded without an open tender to an Umno-linked company.

Nga pointed out that MyEG Executive Chairman Noraesah Mohd was a member of the Umno Supreme Council from 2000–2013 and a Senator from 2005-2008.

“The Company’s executive director Raja Munir Shah was the head of the Tanjung Umno Youth Division in 1997 and subsequently appointed Umno Youth Penang Information Chief until 2004.”

Noraesah holds 6.6 million shares and Raja Munir Shah holds 188.4 million shares in Myeg either directly and indirectly, he said. “The total number of shares held between them represents 33 per cent of the company’s outstanding shares.”

Nga urged Putrajaya to immediately explain why there was a need to outsource a service, previously provided free of charge by the Government, to an Umno-linked company which is now charging employers RM38 for the portal fees for each worker.

“For foreign workers with FOMEMA registration, an additional RM20 needs to be paid to MyEG,” said Nga. “With 2.3 million foreign workers, this would bring potentially RM100 million to MyEG overnight.”