PRESTARIANG SKIN Sdn Bhd (PSKIN), a subsidiary of Prestariang Bhd, today filed a legal claim totalling RM732 million against the government for the unilateral termination of the national immigration control system (SKIN) project by way of expropriation.
It said the sum payable is calculated based on the contractual formula provided in the concession agreement which had been agreed to by the government.
“Parties had engaged in a few rounds of negotiations but were unable to reach an amicable settlement on the quantum. As a last resort, the board of Prestariang is now fiducially obligated and compelled to litigate for its contractual payment,” it said.
PSKIN secured a 15-year concession on August 9, 2017, to design, deliver, continuously maintain and provide scheduled upgrades for a immigration and border control system for the Immigration Department.
Under the concession agreement, PSKIN was to receive approximately RM3.5 billion over 15 years, subject to the entire capital expenditure being privately funded by PSKIN.
Payment to PSKIN by the government was to commence after SKIN is operational.
PSKIN said it had undertaken extensive technical studies and works on the project since 2014 and a substantial amount of expenses had been incurred.
The company said it had also entered into several third-party contracts to execute the SKIN project.
In its legal claim, PSKIN said the agreement spelt out Putrajaya’s obligations in the event the project is unilaterally terminated by way of expropriation.
Prestariang said it had never defaulted on the concession agreement. Despite the 15-year concession, the government unilaterally terminated the concession agreement by way of expropriation, which took effect on January 22.
THE MALAYSIAN INSIGHT