KUALA LUMPUR (July 17): A joint venture (JV) between Berjaya Group and Naza Group has filed a legal suit against the Ministry of Finance (MOF) for terminating a letter of intent (LOI) offered to the JV, said Berjaya Group’s founder and advisor Tan Sri Vincent Tan Chee Yioun.
According to Tan, the LOI — in relation to a contract to supply government vehicles — was terminated three months after former prime minister Tan Sri Muhyiddin Yassin took over the prime-ministership from Tun Dr Mahathir Mohamad.
“They (government) terminated us and gave it to Spanco (Sdn Bhd). The government agreed to spend RM700 million more (compared to the JV’s bid). The government thinks Berjaya and Naza are not good enough in the car business.
“So we have filed a legal suit against [the] MOF on this and we are ready to go to court on this. You will hear more of this down the road,” Tan said in a press conference on Monday (July 17), after a share sale agreement ceremony in which Berjaya is disposing off a waste management business to Naza.
Tan said the tender by the JV — Naza with a 51% stake and Berjaya with a 49% then — was the cheapest among all bidders. He also noted that stakes in the JV have changed, with Berjaya now holding a 40% stake.
Spanco has been maintaining the government’s vehicle fleet since 1994. It was reported earlier that the government has asked interested parties to submit a request-for-proposal (RFP) on the fleet concession, after Spanco’s 25-year concession ended in December 2018.
Previous reports said the new contract is expected to involve 12,500 vehicles over 15 years and worth RM300 million annually, after the fifth year. The cars would be used by ministers, senior government officials and departments, as well as the police.
Among contenders seeking the contract is Spanco, which is a vehicle of tycoon Tan Sri Robert Tan Hua Choon. Other bidders include DRB-Hicom Bhd, Samling Group, and the JV between Naza Group and Berjaya Group.