Govt to sue Zetrix AI over RM314mil in RTD arrears

KUALA LUMPUR - The Malaysian government has filed a civil lawsuit against Zetrix AI Bhd for its failure to pay RM314 million in revenue taxes and penalties within the agreed timeframe. Transport Minister Anthony Loke stated that the government will not consider any further collaboration with Zetrix AI or extend any operational arrangements until the outstanding payments are fully settled, including late transfer fees.

Revenue collected on behalf of the government must not be incorporated into the company's operational funds. Loke emphasized that any delay in transferring the money constitutes a serious breach of contract. The delayed transfer occurred over a period of nearly five months, from May 19 to October 4, despite the ministry issuing 35 reminder notices and holding four engagement sessions with the company.

Zetrix AI, a subsidiary of MyEG Group, submitted a cheque dated September 30 for RM231 million to settle the arrears up to August 17, but it could not be processed. Following Zetrix AI's failure to transfer the revenue to the government, the Road Transport Department terminated their services as RTD collection agents, effective October 5.

The ministry has also lodged a police report regarding the non-transfer of government revenue collections. To prevent future financial leaks, Loke revealed that RTD is in the process of upgrading its MySIKAP portal and MyJPJ super app to reduce dependency on third-party agents. The government is also exploring a proposed mechanism with the Finance Ministry and the Accountant General's Department to directly deposit government revenue into government accounts, bypassing third-party accounts.