Prestariang files RM732 million claim over axed immigration control project

PSKIN had secured a 15-year concession to design, deliver, maintain and provide scheduled upgrades for a new immigration and border control system for the Immigration Department. (Bernama pic)

KUALA LUMPUR: Prestariang SKIN Sdn Bhd (PSKIN), a subsidiary of Prestariang Bhd, today filed a legal claim totalling RM732 million against the government over the unilateral termination of the national immigration control system (SKIN) project by way of expropriation.

In a statement, it said the sum payable was calculated based on the contractual formula provided in the concession agreement (CA) 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 is now 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 would replace the existing Malaysian Immigration System (MyIMMS), 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 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.

PSKIN also entered into numerous third-party contracts for the purpose of executing the SKIN project. In its legal claim, PSKIN said the CA 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 CA. Despite the agreement for a 15-year concession, it said, the government unilaterally terminated the CA by way of expropriation, which took effect on Jan 22, 2019.