Good Governance

E-kesihatan – another parasitic rent-seeking monopoly?

By Kit

September 11, 2007

The medical profession is up in arms against the latest e-Kesihatan scheme which was officially announced by the Road Transport Department (JPJ) deputy director-general Solah Mat Hassan yesterday, requiring drivers of commercial vehicles from next month to pass a medical test done at clinics appointed by an associate company of Fomema Sdn. Bhd, Supremme Systems Sdn Bhd.

Supremme Systems Sdn. Bhd has been awarded a monopoly to carry out such medical tests which would enable it to make profits in the region of hundreds of millions of ringgit in the 15-year monopoly awarded by the Transport Ministry.

This appears to be the latest example of a parasitic rent-seeking rip-off at the expense of the public as there is already a system in place to provide medical tests for commercial drivers involving medical practitioners with the JPJ directly, which can be further improved to deal with abuses or weaknesses instead of creating a new system which is more rent-seeking in nature than entrepreneurial.

I have received an email from an infuriated medical practitioner on the letter of registration sent by Supremme Systems Sdn Bhd, a subsidiary of Pantai Holding Sdn Bhd to primarycare doctors in the Klang Valley to pay RM100.00 as registration fee and requesting particulars of each clinic.

The letter states that to participate in the medical examination of Goods Drivers Licence (GDL) and Public Service Vehicle (PSC) licence renewal annually by commercial vehicle drivers, the private doctors must use their ICT. This letter demands reply and payment within 10 days.

The email continued:

“This company is a monopoly and has infringed on patients confidentiality and also on the security of this data. “Currently, the annual renewal is done using a gateway which is linked to ekesihatan of JPJ. A user friendly gateway system was proposed to Ministry of Transport.This gateway which protects the Malaysian citizens of their confidentiality and the doctors Hippoctaes Oath of secrecy and only payment of Ringgit Two is traffic charge to transmit the medical certification with a encription code used by each doctor to JPJ via the gateway. There is a breach of medical confidentiality of patients medical records to third parties when Pantai Supremme becomes a third party to collect the data and there is a breach of the Malaysian citizens human right. “The proposed system demands payment of RM80 at the post office by the driver. Pantai Supremme charges a service fee of RM 30 per driver, Laboratory test for urine cannibinoids, ATS and Oppiates RM20. Payment to doctors for medical examination RM 30.00 after 90 days. “There are 1,200,000 commercial vehicle drivers and the active drivers are approximately 1,000,000 in number. Pantai Supremme will be entitled to siphon off RM28 million per year after deducting RM2 Ringgit per driver as their overhead cost expenses. “We are perturbed about the status of the drivers vis a vis the laboratory report.The verification of these results and the poor standards of batch entry and quality control used by laboratories to conduct the urine for substance abuse test is questionable.The laboratories use this method to save cost. Is there a mechanism to rehabilitate these driver and how long will these drivers be suspended and what is the grievance mechanism?”

At present, commercial drivers have to pay RM50 for new applications and RM20 for renewals for medical tests, which will now go up RM80 for renewals under the Supremme Systems monopoly.

I understand that Koperasi Doktor Malaysia Bhd had submitted a comprehensive proposal to the ministry last year with two scales of fees, much lower than the Supremme Systems monopoly.

Instead of giving the Koperasi Doktor Malaysia Bhd proposal serious consideration, the Supremme Systems has come into the picture and been awarded a monopoly, which seems to be institutionalizing a system of rent-seeking middle-men system to add to the costs of doing business and making a living in the country.

I call for the suspension of JPJ’s 15-year e-Kesihatan monopoly concession to Supremme Systems Sdn. Bhd to conduct annual medical tests for commercial drivers to ensure that it is not the latest example of parasitic rent-seeking rip-off in the region of hundreds of millions of ringgit at public expense to the benefit of a handful of cronies of the present government system.

(Speech 3 on 2008 Budget in Dewan Rakyat on September 11, 2007)