Awanbiru Technology Bhd (Awantec) today said High Court judge Latifah Tahar delivered the judgment on the lawsuit filed by its subsidiary, PSKIN, today.
“The judge awarded PSKIN a judgment sum of RM231,549,002.90, post-judgment interest of 5% per annum of the judgment sum calculated from the date of judgment to the date of full satisfaction of the judgment sum,” Awantec said in a Bursa filing.
Awantec also said the High Court ordered the government to pay PSKIN cost of RM80,000, subject to allocatur fees.
In April 2019, PSKIN filed a legal claim totalling RM732 million against the government over the unilateral termination of the SKIN project by way of expropriation.
It said the sum payable was calculated based on the contractual formula provided in the concession agreement which was agreed to by the government.
“Parties 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 was fiducially obligated and compelled to litigate for its contractual payment,” it said.
PSKIN secured a 15-year concession on Aug 9, 2017, to design, deliver, maintain and provide scheduled upgrades for a new and improved immigration and border control system for the immigration department.
This was intended to replace the existing Malaysian Immigration System (MyIMMS), with added functionalities. Under the concession agreement, PSKIN was to receive about 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 once SKIN was completely operational. PSKIN had undertaken extensive technical studies and works on the project since 2014, with a substantial amount of expenses incurred.
The company also entered into numerous third-party contracts for the purpose of executing the SKIN project. In its legal claim, it said the concession agreement clearly spelt out Putrajaya’s obligations in the event that the project is unilaterally terminated by way of expropriation.
Prestariang also reiterated that PSKIN had never defaulted on the concession agreement. Despite the agreement for a 15-year concession, it said, the government unilaterally terminated the agreement by way of expropriation, which took effect on Jan 22, 2019.