PAC reports "flying car" funding a private initiative project

KUALA LUMPUR - The "flying car" project received funding of RM20mil from the government despite it being touted as a private initiative project, says Parliament's Public Accounts Committee (PAC).

In a report tabled on Thursday (Nov 28) on the air mobility vehicle, the PAC said although the Entrepreneur Development Minister Datuk Seri Redzuan Mohd Yusof announced that the flying car project was a private-driven initiative, the Malaysian Industry-Government Group for High Technology (MIGHT) approved a sum of RM20mil for investment in Aerodyne Ventures Sdn Bhd (AVSB).

AVSB, the company developing the project, received the money in November.

"MIGHT, through Venture Tech Sdn Bhd (VTSB), approved the investment in AVSB.

"It was acknowledged by the Economic Affairs Ministry that the funds were transferred to AVSB on Nov 1,2019," said PAC in its report.

It added that the Minister had openly promoted AVSB since February this year. However, the PAC said the government had not done due diligence on AVSB as to whether it had the financial, intellectual property rights, expertise or capacity to develop the flying car project.

"The PAC finds that the announcement on the flying car development project by the minister was done too early without detailed planning or informing the Cabinet about it.

"The Minister promoted the project as if it was a national project. The PAC found that this project is actually a private initiative," said the report.

Redzuan had also said AVSB would be using local technology to develop the project, but the PAC found that the prototype would be built in Japan as it had the ecosystem and facilities to build the flying car.

"The PAC also takes note that there are no laws currently on the monitoring and the usage of flying cars in Malaysia," said the report.

The PAC included its recommendations in the report, among them that there should be preparation and tabling of a complete Cabinet paper to get approvals on matters involving the rakyat.

"Planning and research must also be done thoroughly before a project is announced to the public so it does not give a negative perception or become a matter that can be criticised by society," said the PAC.

It also advised the Entrepreneur Development Ministry to have coordination and cooperation with other ministries, agencies, and departments in implementing any government programmes or projects before publicity was sought.

"The Entrepreneur Development Ministry is advised to do its due diligence before making any announcement and decision.

"VTSB also needs to do more monitoring on the spending one by AVSB to ensure the investment of RM20mil by VTSB is actually used for the purpose that it was approved for," said the PAC.

The PAC also asked the National Audit Department to conduct an audit on the RM20mil investment.

On Feb 26 this year, Redzuan said Malaysia's first flying car was expected to be unveiled this year.

In March, he told Parliament that the government's endorsement of the privately funded project was aimed at developing human capital.

Malaysians made fun of the flying car project on social media, with some asking if the model used to represent the expected car was made from KDK fans.