KUALA LUMPUR, Dec 17 — CIMB Group Holdings Berhad has initiated legal action against highway concessionaire PLUS Malaysia Berhad for violating an almost-two decade joint venture agreement (JVA) regarding toll payment collection.
In an announcement on Bursa Malaysia Securities' website, CIMB Group Holdings along with its wholly-owned subsidiary CIMB SI 1 Sdn Bhd said it served a Notice of Arbitration to PLUS, dated to December 17.
“The company and CIMB SI 1 are seeking to invoke the arbitration agreement contained in the JVA in relation to disputes that have arisen with PLUS in connection with and/or under the JVA,” it said.
On May 12, 1998, CIMB SI 1 and PLUS signed the JVA in relation to cashless payment system Touch 'N Go Sdn Bhd.
CIMB Group Holdings argued that PLUS breached the agreement's obligations by launching its own Radio Frequency Identification (RFID) system.
“Among others, the company and CIMB SI 1 are seeking an injunction to restrain PLUS from engaging in further business of the PLUS RFID system together with damages, interests and costs,” it said, adding that it will continue to update Bursa Malaysia Securities on any developments.
CIMB Holdings Group's actions follow in the wake of PLUS Malaysia's launching last Saturday of its RFID system's public pilot phase for users of the Penang Bridge, Butterworth-Kulim Expressway and Jitra in Kedah.
In early September, Touch 'N Go began the pilot phase of its RFID system, which was subsequently expanded to other states including Penang on Dec 9.