Malaysia is moving to sue Zetrix AI and its subsidiary MyEG over RM314 million in government revenue collected through Road Transport Department (JPJ) services.

Transport Minister Anthony Loke confirmed that the government was pursuing civil action against both companies, Bernama reported.

JPJ suspended their collection services on 5 October after they failed to transfer revenue collected between 19 May and 30 September.

Loke previously disclosed that authorities had issued 35 reminders and held several discussions with the companies over the unpaid collections.

Zetrix AI subsequently proposed a settlement to resolve the arrears and restore its services, subject to government approval.

Loke warned that public revenue cannot be used to fund company operations, describing the payment delays as serious contractual breaches.

The companies must settle their outstanding payments and late-transfer penalties before their services can be considered for reinstatement.

The Transport Ministry and JPJ are reviewing ways to reduce reliance on third-party collection agents.

Proposals include transferring revenue directly into government accounts and automatically suspending transactions when agents miss the one-working-day payment deadline.

The government is also considering mandatory bank guarantees from parent companies to protect public revenue.

Featured image: Edited by Fintech News Malaysia, based on image by andreypopov via Magnific

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