Prestariang sues govt for RM732m over axed SKIN project

PSKIN secured a 15-year concession on August 9, 2017 to design, deliver, continuously maintain and provide scheduled upgrades for a new and much-improved immigration and border control system for the Immigration Department. — Picture by Yusof Mat Isa
PSKIN secured a 15-year concession on August 9, 2017 to design, deliver, continuously maintain and provide scheduled upgrades for a new and much-improved immigration and border control system for the Immigration Department. — Picture by Yusof Mat Isa

KUALA LUMPUR, April 15 — 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.

In a statement, it said the sum payable is calculated based on the contractual formula provided in the concession agreement (CA) 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 new and much-improved immigration and border control system for the Immigration Department of Malaysia.

This would replace the existing Malaysian Immigration System (MyIMMS) but with added functionalities. Under the CA, PSKIN was to receive approximately 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 would only commence after SKIN is completely operational. PSKIN had undertaken extensive technical studies and works on the project since 2014 and a substantial amount of expenses had been incurred.

PSKIN had also entered into numerous third-party contracts for the purpose of executing the SKIN project. In its legal claim, PSKIN highlighted that the CA clearly spelt out Putrajaya’s obligations in the event the project is unilaterally terminated by way of expropriation.

Prestariang wished to reiterate that PSKIN had never defaulted on the CA. Despite the agreement for a 15-year concession, the government unilaterally terminated the CA by way of expropriation, which took effect on January 22, 2019. PSKIN strongly believed that the CA was fair and reasonable. — Bernama

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