KUALA LUMPUR – A Berjaya Corporation Bhd-backed entity has filed to withdraw its judicial review against Spanco Sdn Bhd and others relating to the termination of a multi-million-ringgit government vehicle fleet supply and management contract in 2020.
Cekap Urus Sdn Bhd, a joint venture (JV) between Berjaya, Naza Corporation Holdings Sdn Bhd and Yang di-Pertuan Agong Sultan Ibrahim’s daughter Tunku Tun Aminah Sultan Ibrahim, filed the notice of discontinuance on August 2.
According to Cekap Urus’ lawyer, Chuar Kia Lin, Spanco is objecting to the JV’s terms for the discontinuation, which include no order as to costs, while it reserves its right to file a fresh action at a later date.
Chuar told Scoop that while the Attorney-General’s Chambers (AGC) on behalf of the government and the Finance Ministry have no objections to the terms of the filing, Spanco is seeking a court order for costs and a denial of Cekap Urus’ liberty to file afresh.
“The court has fixed September 3 for case management before the judge (Datuk Ahmad Kamal Md Shahid). Parties will be able to ventilate on the matter of costs and liberties then,” Chuar said when met after case management before a court registrar today.
“There is a possibility that parties will be able to settle (their disputes) before the upcoming case management.”
Federal counsel Mohammad Sallehuddin Md Ali confirmed to Scoop that the AGC has no disagreements with the filing by Cekap Urus, in which Berjaya owns a 51% stake while Naza and Tunku Tun Aminah hold the remaining 29% and 20%, respectively.
The legal challenge was first initiated in August last year by Berjaya Group founder Tan Sri Vincent Tan, who filed the application under Cekap Urus through Messrs Pierre Chuah & Associates.
Tan claimed that in 2019, the JV was issued a letter of intent (LoI) to take over from Spanco the management of the government’s fleet concession, which reportedly involved around 12,500 vehicles worth an estimated RM300 million annually starting after the fifth year.
However, the business tycoon claimed that in 2020, the Perikatan Nasional administration under then-prime minister Tan Sri Muhyiddin Yassin had terminated the LoI with Cekap Urus to return the tender to Spanco while paying the latter RM700 million more.
Besides a court declaration that the LoI’s termination by the Finance Ministry then, as well as the decision to award Spanco the contract through direct negotiation, was invalid, null and void, Cekap Urus had also sought a mandamus order to compel the government to execute the LoI awarded to it.
Apart from that, the JV sought a certiorari order to quash the government’s decision on January 25 this year in dismissing its appeal against the termination, a stay of the government and ministry’s decision pending determination of the matter, as well as damages and costs to be assessed.
On April 3, Spanco chairman Tan Sri Robert Tan claimed trial to a charge of dishonestly inducing the Finance Ministry into awarding a fleet supply, repair, maintenance and management contract to Spanco in 2019.
Tan, who was charged with cheating under Section 420 of the Penal Code, was accused of tricking the ministry into awarding the tender worth RM3.9 billion by claiming that at least 30% of Spanco’s shareholders were Bumiputera. – August 22, 2024
