MalaysiaZetrix AI owes Malaysia RM314m
The company failed to remit collections from May to September, prompting the Transport Ministry to suspend its services. Zetrix AI's share price has plunged 35% following the suspension.
Global Newsflix 2 min read
Transport Minister Anthony Loke Siew Fook said Zetrix AI Bhd owes the Road Transport Department RM314 million in unremitted collections from May to September this year.
The ministry suspended Zetrix AI's services, along with its subsidiary MyEG, due to the outstanding amount, which was supposed to be transferred within one working day of each transaction.
Loke said the ministry had held four engagement sessions with stakeholders and issued 35 reminder notices with deadlines, but the company failed to settle the arrears.
In September, Zetrix AI gave the government a cheque of RM231 million to settle the arrears, but the company instructed the bank not to process the cheque.
The suspension of Zetrix AI's services will not be lifted until the arrears are settled, and additional conditions will be imposed, such as direct credit into the government account.
Zetrix AI's share price has been under intense scrutiny, plunging 90% since August and wiping out nearly RM4.7 billion in market capitalisation.
The company's group managing director, Wong Thean Soon, has been forced to divest nearly two-thirds of his 29% stake in the company since August 27.
Key facts
- Zetrix AI owes RM314 million to the Road Transport Department
- The company's services have been suspended due to the outstanding amount
- Zetrix AI's share price has plunged 35% following the suspension
- The company has been forced to divest nearly two-thirds of its stake
Three perspectives
Neutral
The suspension of Zetrix AI's services has significant implications for the company's financial future. The Transport Ministry's decision to suspend services is a response to the company's failure to remit collections. The outcome of this situation will depend on Zetrix AI's ability to settle the arrears and comply with the ministry's conditions.
Positive
The Transport Ministry's decision to suspend Zetrix AI's services demonstrates a commitment to ensuring that companies comply with their contractual obligations. This move may help to restore public trust in the government's ability to manage its contracts.
Negative
The suspension of Zetrix AI's services is a significant blow to the company's reputation and financial stability. The company's failure to remit collections raises concerns about its ability to manage its finances and comply with its contractual obligations.
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