The consortium, owned by a foreigner, was awarded a 15-year contract by the government in January, 2003, to implement the computerised "L" driving licence tests and other related e- services.

In line with the concession agreement, the consortium had set up 55 computerised driving centres throughout the country to conduct the tests.

To facilitate operations, the consortium is said to have signed a marketing and sales accord to appoint several companies as outsourcing agents to secure potential candidates.

ACA investigations revealed that the government was not notified of the outsourcing arrangement by the consortium.

As a result, the consortium failed to "control" its agents, leading to the act of corruption and arrests by the ACA in its crackdown over lesen gerenti lulus (guranteed licences).

Sources said the agreement signed with the government clearly stated that the government could terminate the contract if the company was found to have flouted the rules and was involved in graft practices.

Investigations also revealed that the consortium failed to terminate the contract of errant and corrupt agents.

Transport Minister Datuk Ong Tee Keat, who was in Kedah, said he was aware of the case.

However, since those arrested had not been convicted of any corrupt practices, the government had to wait before deciding on its next course of action.

"We have been advised by the Attorney-General's Chambers that since no one (agents) has been convicted so far, the government will have to wait, but we are still monitoring the situation and the consortium closely.

"There may be legal implications if we were to terminate the contract at this point. So, we will have to wait for the court to decide before taking any action," he said.

In September last year, three enforcement agencies - the ACA, police and the Road Transport Department - joined hands in an integrated operation to clamp down on unscrupulous driving school operators who allowed learner drivers to get their provisional "L" licences without sitting the Highway Code test.

Candidates were believed to have paid driving school operators or instructors between RM100 and RM600 to get their learner's licences.

ACA deputy director-general Datuk Abu Kassim Mohamed had said that the scam was discovered in June. Apparently candidates only had to press a few buttons on the computer keyboard and the answers for the Highway Code test would pop up online.

More than 20 driving school operators and workers were picked up to facilitate investigations. Several of those investigated had been charged in courts.

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