The project has since been scaled down.
According to sources, the ACA was also probing how a Singapore-based company, several of whose directors are Israeli nationals, was awarded a slice of the project when it was against the Government's directive to do so.
The Israelis are said to be former officers in the Israeli Air Force.
The upgrading of the communications system would enable traffic policemen, those in mobile patrol vehicles and beat-duty policemen to communicate with each other and with their control centres.
The sources said the authorities had begun their preliminary inquiries into the companies to ascertain whether there was any irregularity in the awarding of the project and whether they could pose a security risk.
They said the ACA would call up several people, including police officers and senior government officials to assist in investigations following allegations that the company does not possess the requisite expertise.
It is learnt the Home Ministry had first awarded the RM980mil upgrading project to a well-known multi-national company in February.
However, in March, the company was informed that a local IT company had been appointed as local partner for the project, causing eyebrows to be raised.
With the latest development, sources said the IT company?s involvement in the project has since been limited to enable further discussions on the matter.
Inspector-General of Police Tan Sri Musa Hassan said police were aware of the involvement of the Israelis in their communications systems upgrading project.
"We informed the Home Ministry as soon as we learnt about it," he said, declining to elaborate.
It is learnt that the Government has decided to scale down the project for the time being and had only approved its first phase, estimated to cost around RM42mil.
The IGP had last October announced that the police planned to equip their personnel with hand-held computers, and micro-cameras fitted into walkie-talkies, as part of a massive plan to beef up the force's capability.
He had said the police wanted to use such high-tech devices and set up a network of camera surveillance systems to fight crime more effectively.
Musa said the force needed to have an e-solution system that would enable them to communicate with police helicopters, airplanes and marine police as well as with their mobile police vehicles.
"The Bukit Aman control centre will use the latest high-tech devices and communication systems to relay, monitor and coordinate operations throughout the country," he said.
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