Using technology to nail cheats

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JPJ to launch new computer system to combat vehicle cloning, false declaration of tax on imported vehicles

A vehicle from neighbouring Kalimantan Barat exiting fromTebedu CIQ. — Photo by Chimon Upon

TEBEDU: The Road Transport Department (JPJ) will launch on Jan 1 next year an integrated computer system that will be linked with all insurance companies and Customs Department to stop vehicle cloning and false tax declaration of imported vehicles.

JPJ director-general Dato Sri Ismail Ahmad said the selling of clone vehicles and falsifying documents for lower tax was rampant in the country.

“These problems cost the government hundreds of millions of ringgit in revenue annually,” he said during the department’s ‘CIQ-level Integrity Pledge’ at the CIQ (Customs, Immigration and Quarantine) complex here yesterday.

State JPJ director Ibrahim Othman was also present.

Ismail added that tax declarations on many vehicles brought into the country had not been accurate as syndicates used fake documents to fool the authorities.

As for car cloning, he said the syndicates would reassemble wrecked vehicles –those considered as ‘Total Loss’ or ‘Beyond Economic Repair’ following an accident – to be sold at much cheaper prices.  The buyers would face problems  when renewing their insurance or road tax.

“If no action is taken against these illegal operations, both the government and the public (who were cheated to purchase clone vehicles) would be affected.”

Ismail stressed that insurance companies must declare all vehicles that had been labelled as ‘Total Loss’ or `Beyond Economic Repair’. The integrated computer system would enable JPJ to monitor the movement and presence of clone vehicles on the road.

He explained that the upgrading of the department’s system and improving linkages with other enforcement agencies was very important to stop cheats on their tracks.

Syndicates, Ismail said, had apparently studied the weaknesses in the previous JPJ system and exploited it.

This in part forced JPJ to introduce a new biometric system last July to prevent identity theft in the changing of vehicle ownership process.

“Change in vehicle ownership is among the most widespread fraud cases, and the process was done without the owner’s knowledge. The syndicates used fake documents, including letter of oath and fake road tax, to change vehicle ownership.

“The new system, however, requires the presence of the current and new owners for biometric verification purposes.”

On the Integrity Pledge campaign for CIQ-based officers, Ismail said this was to ensure transparency and strengthen efficiency while combating graft and stopping leakages. More importantly, border officers are often seen as the frontline of enforcement, which also reflects foreigners’ perception of the country.

He said JPJ was serious in fighting graft, considering that it was dealing with about 14 million licensed drivers and 24 million registered vehicles, which translates to huge amount in financial transactions annually.

Hence, integrity within the department must improve to combat abuse of power and corruption.

On another note, Ismail announced that the International Circulation Permit (ICP) – issued to foreigners who bring their vehicles into the country – would remain free-of-charge for now.

“The main duty of JPJ officers at CIQ complexes throughout the country is to conduct vehicle checks and to issue ICP. Our declaration of integrity programme today (Monday) is to inform our customers that both our services at the border security checkpoints are free until further changes.”

As of October this year, the department issued 10,086 units of ICP from 13 CIQs nationwide for vehicles entering from Indonesia, Singapore, Thailand and Brunei.

JPJ expects the number to reach 12,000 units by the end of the year.

Last year, the department issued 12,440 units, and 12,649 the previous year.

Ismail signs a notice plaque in front of JPJ office at Tebedu CIQ which states that the issuance of ICP will be free of charge. With him is Ibrahim. — Photos by Chimon Upon

Ismail (standing centre) mingles with a visitor from Kalimantan Barat during the latter’s ICP application process at Tebedu CIQ yesterday.