KUALA LUMPUR: Awanbiru Technology Bhd (Awantec) today announced that its unit Prestariang Skin Sdn Bhd (PSKIN) has won a suit against the government for the unilateral termination of Sistem Kawalan Imigresen Nasional (SKIN) project in 2019.
It comes with an award of RM231.5 million.
In a filing with Bursa Malaysia Securities Bhd today, the company said the Kuala Lumpur High Court Judge Datuk Seri Latifah Mohd Tahar delivered the decision of the Originating Summons filed by the PSKIN on April 22, 2019 against the government of Malaysia today.
The Judge awarded PSKIN a sum of RM231.5 milion, post-judgment interest of 5 per cent per annum of the Judgment Sum calculated from the date of judgment to the date of full satisfaction of the sum and costs of RM80,000.00 to be paid by the government of Malaysia.
PKIN filed a legal claim totalling RM732 million against the government on its unilateral termination of the SKIN project in April 2019.
Then, PSKIN said the sum payable is calculated based on the contractual formula provided in the concession agreement agreed to by the government.
PSKIN secured a 15-year concession on August 9, 2017 from the government to design, deliver, continuously maintain and provide scheduled upgrades for a new and much improved immigration and border control system for Jabatan Imigresen Malaysia.
It was to replace the existing Malaysian Immigration System (MyIMMS) but with added functionalities.
Under the concession agreement, PSKIN was to receive RM3.5 billion over the 15-year concession period, subject to the entire capital expenditure being privately funded by PSKIN.
Payment to PSKIN by the government was to commence after SKIN was completely operational.
PSKIN undertook extensive technical studies and works on the project since 2014 and substantial amount of expenses were incurred. PSKIN had also entered into numerous third-party contracts for the purpose of executing the SKIN project.
Despite the agreement for a 15-year concession, the government unilaterally terminated the concession agreement by way of expropriation, on Jan 22, 2019.
Awantec's share price was up almost 5.9 per cent to 54 sen at midday. Some 3.9 million shares changed hands.