DESPITE the various controversies surrounding MySejahtera, the app will reportedly be expanded with a facility to make appointments at public primary healthcare facilities. 

But many questions remain and with the new administration in place, it is time for the endless speculations and theories regarding this troubled app to end, better alternatives formulated, and those responsible held accountable. 

It was reported in October that the Public Accounts Committee (PAC) recommended that the government take ownership of MySejahtera. 

For context, KPISoft, now known as Entomo Malaysia (Entomo), was the directly appointed app developer, in what was initially understood as a corporate social responsibility (CSR) deal with the government. 

However, during the supposed CSR period, Entomo reportedly entered a lucrative commercial agreement with MySJ, making MySJ the effective “owner” of the app. 

Entomo’s deal with MySJ ensures there was no need or use for open tenders, as no one else can legally operate MySejahtera other than MySJ. 

Thus, the government was “trapped” into dealing with MySJ. 

Even though Entomo’s directors are different from MySJ’s, Entomo Malaysia’s single shareholder, Entomo Pte Ltd in Singapore, appears to share a common director with MySJ. 

As the sole shareholder, Entomo Pte Ltd has a controlling stake in Entomo Malaysia. It is reasonable for investigators to speculate whether this is a typical characteristic of a proxy company.

The potential conflict of interest could be preventing MySJ from getting the best deal from Entomo, which could explain why MySJ’s biggest cash flow dent comes from its debt to Entomo.

If anything, these are reasons for the government not to acquire MySejahtera – what more at a premium price, using public funds.

There are no upsides for the government to stick with MySejahtera unless there is something there that it feels must be acquired, no matter what.

How do we know that only the government has exclusive access to the data, especially before any formal contracts were made? What legal document(s) or infrastructure govern data accessibility, exclusivity, security, and integrity in the past and now? 

Not only is Entomo Malaysia owned by a Singaporean entity, but as reported by CodeBlue, Entomo Pte Ltd has other shareholders, consisting of Singaporean, American, and Japanese corporate and individual shareholders, and individual shareholders from Malaysia, India, and Indonesia.

If the transfer of personal data out of the country did occur, users of MySejahtera have not been approached to give consent. This would mean that Malaysia’s Personal Data Protection Act 2010 has been breached. 

PAC chairman Wong Kah Woh reportedly said a ceiling price of a whopping RM196 million has been set by the Finance Ministry to procure MySejahtera over two years. 

As CodeBlue said, this figure is more than the Health Ministry’s entire annual radiotherapy and oncology budget for 2022 (RM137 million).

Emir Research found that MySJ shareholders have agreed to a minimum of 30% profit margin at all times.

Therefore, however absurd MySJ’s costs may be (which appear to be mostly due to its financial obligations to Entomo), they would have to be repaid through fees paid by the government – taxpayers’ money. 

According to reports, KPISoft incurred over RM47.8 million throughout its “CSR commitment” from April to November 2020.

Expert opinion reported in technology ecosystem news portal Digital News Asia pointed to a cost of not more than US$238,000 (RM1.05 million) to develop the first three modules of MySejahtera, after studying its features.

A press statement released March 29, 2022, by a Malaysian software developer offered to not only replicate MySejahtera, but also improve it, for about RM6 million. 

Emir Research’s sources indicate the total development cost to be around RM8 million to RM12 million.

The direct and obscure appointment of KPISoft/Entomo in a contractless CSR deal with only a non-disclosure agreement to govern data ownership is the catalytic domino that led to subsequent commercial, technical, and legal “traps”.

Without a contractual obligation, nothing stops Entomo from entering a commercial agreement with MySJ during the supposed CSR period. 

No doubt the government could use the Covid-19 pandemic to justify urgency, but that does not explain the lack of contracts or its opting for a CSR deal.

This is why Emir Research dubs the entire scandal a “CSR trap”, and the absurdity of the case points to either incompetence or collusion.

Someone (or a group of people) overlooked simple governance and due-diligence procedures, or they were “conned” with a bad deal. 

The issues raised warrant further investigation and Emir Research recommends an independent commission be formed to look into the matter. 

Someone must pay for this mess, and it shouldn’t be the Malaysian people. – January 3, 2023.

* Rais Hussin and Ameen Kamal read The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.