KUALA LUMPUR – A Berjaya Corporation Bhd-backed entity has decided to push through with its judicial review against Spanco Sdn Bhd and others in relation to the termination of a 2020 multi-million ringgit government vehicle fleet supply and management contract.
This comes after 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 to withdraw its legal challenge on August 2.
Cekap Urus’ lawyer Chuar Kia Lin told Scoop that judge Datuk Ahmad Kamal Md Shahid had today allowed his client to withdraw their notice of discontinuance with costs payable to the respondents – the government, the Finance Ministry and Spanco.
The court determined that costs of RM1,000 to the government and Finance Ministry are not subject to allocatur – a writ or other pleadings – while the RM1,000 to be paid to Spanco is subject to allocatur.
“All respondents will have to file an affidavit in reply on or before November 29 (while) parties will have to file their written submissions on February 6 next year,” he said when contacted.
He added that the next case management has been set for March 12.
Previously, Scoop reported that Spanco had objected to Cekap Urus’ terms for the now-rescinded discontinuation, which included no order as to costs while the JV reserves its right to file a fresh action at a later date.
Federal counsel Mohammad Sallehuddin Md Ali confirmed to Scoop then that the Attorney-General’s Chambers had no disagreements with the filing by Cekap Urus, in which Berjaya owns a 51% stake, while Naza and Tunku 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. The application received leave, with several hearings held this year.
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 and 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.
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 the 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. – October 30, 2024