Transport Minister Denies Awarding PPKM Contracts to Cronies

Transport Minister Anthony Loke has denied allegations that his ministry approved companies linked to cronies to carry out motor vehicle inspection services (PPKM).

“If I were giving it to cronies, I wouldn’t be stupid enough to announce these companies openly. When the previous Perikatan Nasional government appointed companies, they didn’t even respond unless questioned in Parliament.

“But now, we transparently make announcements even without being asked.

“They applied, and we conducted an evaluation through the technical committee under the Road Transport Department (JPJ),” he said in a video uploaded on TikTok today.

Previously, the Ministry of Transport (MOT) approved three new companies to implement PPKM, which was previously monopolized by the Computerized Vehicle Inspection Center (PUSPAKOM).

Loke stated that the appointments were made in line with a Cabinet decision on March 17, 2023, which agreed to open mandatory motor vehicle inspection services, as required under the Road Transport Act 1987 (Act 333), to other qualified companies.

Further clarifying, Loke emphasized that the three approved companies did not receive any government funding to operate PPKM.

“The government is not paying these companies anything, and many, especially opposition politicians, are confused about this.

“A contract means the government is purchasing something, but in this case, it’s not a contract—we are only granting licenses.

“This licensing process is similar to a driving license. Anyone who passes the test will get a license. Similarly, these companies have been given conditional approval for 24 months.

“Within this 24-month period, the companies must set up the necessary facilities before the license can be issued to them,” he explained.

Addressing criticism about granting approval to companies without prior experience, Loke pointed out that no other companies had been allowed to conduct vehicle inspections before.

“There were no experienced companies because, previously, no other company was permitted to carry out vehicle inspections besides PUSPAKOM.

“Last year, PUSPAKOM’s 30-year concession ended.

“We had a choice—if we extended PUSPAKOM’s concession, the public would have no alternatives. Instead, the government decided to open up the market to other companies,” he added.

Loke also responded to questions about why some companies were approved for multiple locations.

“One company was granted three locations because the first approved area, Port Klang, has a high population.

“The other two locations are Mersing and Gua Musang. The condition set by MOT is that if a company gets approval in a high-demand area (which generates more profit), they must also open branches in less populated areas, which may not be as profitable.

“This way, we can bring services to rural communities,” he said.

Additionally, Loke denied allegations that he was trying to break PUSPAKOM’s monopoly because it is a Bumiputera-owned company.

“We do not look at racial factors. The companies that received these licenses are also Bumiputera-owned. The government’s policy is to encourage competition.

“Why should we remain stuck in the old system? Why not give other Bumiputera entrepreneurs a chance?

“It is regrettable that every issue raised is always tied to racial matters.

“We just want what is best for the country and the people,” he stated.