Anti-graft groups urge halt to private firm cash management

Anti-corruption watchdogs have renewed calls for stricter controls over private companies handling public money, citing systemic vulnerabilities exposed by a massive debt accumulation at a major collections firm.

Transparency International and the Centre for Governance and Accountability (C4) have demanded the government halt arrangements allowing private entities to manage public revenues, particularly in real-time collection systems. The groups specifically referenced Zetrix's RM314 million in unpaid arrears as evidence of inadequate oversight mechanisms.

The watchdogs are advocating for comprehensive procurement reforms to address gaps that enabled such significant fund mismanagement. They argue that current regulatory frameworks fail to provide sufficient safeguards when private companies serve as intermediaries in public revenue collection.

The case highlights broader concerns about accountability in Malaysia's public finance systems, particularly regarding how government collects and manages funds through third-party operators. Both groups have stressed the need for real-time monitoring systems and stronger auditing protocols to prevent similar incidents.

Government agencies have not yet responded to the groups' recommendations for policy overhaul.