KUALA LUMPUR: Datasonic Group Bhd’s subsidiary Datasonic Technologies Sdn Bhd (DTSB) managed to resupply chips for Malaysian passports through direct negotiation despite their underperformance, the High Court was told today.
The Home Ministry initially rejected DTSB’s application due to delays in the supply of polycarbonate chips which had affected the Immigration Department's services.
However, in July 2016, the company managed to secure the contract when the Immigration Department faced a shortage in the supply of international passports.
Ministry of Finance Procurement Department former deputy secretary Dr. Uzailee Abdul Latif said DTSB had secured the contract after they passed the ‘Proof of Concept’ (POC) and received certification from the Home Ministry and Immigration Department.
Uzailee in his witness statement said DTSB had sent a letter to the Prime Minister's Office to acquire the project to supply 12.5 million chips for Malaysian passports through direct negotiation.
“On July 7, 2014, I sent a letter to the Home Ministry to get their views on the application by DTSB.
“I received a reply from the ministry and they wanted to maintain their current contract with Percetakan Keselamatan Nasional Sdn Bhd (PKN) and IRIS as their main supplier for chips due to their excellent services.
He said the ministry in its letter also informed that DTSB's service was unreliable as there was often a delay in supplying polycarbonate chips which had affected the Immigration Department's services.
However, Uzailee said a meeting was held between DTSB, MoF, Home Ministry and Immigration Department on Nov 27 to obtain additional information from DTSB regarding the project.
“MoF wanted to evaluate DTSB whether they could successfully deliver the project.
“In June 2016, the MoF approved DTSB’s application due to shortage in the supply of international passports," he said.
Datasonic Group Bhd and DTSB was implicated in criminal charges against Datuk Seri Dr Ahmad Zahid Hamidi where the former deputy prime minister is accused of receiving a RM5 million cheque from a Datasonic Group director.
The Bagan Datuk member of parliament is also charged with receiving another cheque of RM1 million from the same director in relation to the Malaysian passport chips.
Hearing continues before Judge Collin Lawrence Sequerah.