KUALA LUMPUR, Oct 27 — The government is taking civil legal action against collection agent Zetrix AI Berhad after the company failed to remit millions in government revenue collected on behalf of the Road Transport Department (JPJ).

Transport Minister Anthony Loke said the legal action followed the company’s failure to settle its total outstanding balance and accrued late-payment penalties within the stipulated deadline.

“Any delay in remitting the funds is categorised as a serious breach of contract terms,” Loke said when winding up his ministry’s Budget 2027 second reading debate.

“The government has also established full settlement of all outstanding balances, including late-transfer penalties, as an absolute prerequisite before granting any approval for extension or further operational consideration,” he added.

“We are currently in the process of taking legal action, including filing a civil lawsuit against the company, following its failure to settle the total outstanding amount along with penalties within the stipulated timeframe.”

JPJ initiated follow-up actions between May 19 and October 4, issuing 35 reminder notices and holding four engagement sessions, alongside special discussions, to demand the unremitted revenue.

Loke said that after repeated warnings, the company submitted a post-dated RHB Bank Berhad cheque dated September 30, 2026, valued at RM231 million. The cheque was intended to settle outstanding revenue collected up to August 17, but could not be honoured.

JPJ formally terminated its services with Zetrix AI as a revenue collection agent effective October 5. JPJ subsequently lodged a police report on October 7 over the unremitted government revenue.

To prevent similar issues in the future, Loke said the Transport Ministry and JPJ were tightening internal controls, including upgrading the MySIKAP portal and MyJPJ super app to reduce reliance on third-party collection agents.

The government is also reviewing a proposed mechanism with the Ministry of Finance and the Accountant-General’s Department to route all revenue directly into Treasury accounts without passing through third-party intermediaries, he added.