KUALA LUMPUR (Aug 22): Iris Corp Bhd has written to the Home Ministry (KDN) to dispute the “invalid and unlawful” termination of the group’s contract for the National Integrated Immigration System (NIISe).
Iris said the letter was issued on Tuesday (Aug 22) through its wholly owned subsidiary, Iris Information Technology Systems Sdn Bhd (IITS), after the group obtained independent legal advice.
“IITS firmly disputes the termination as stated in the notice of termination and will take necessary actions to protect its interest and exercise its legal rights in relation to the NIISe contract,” Iris said in a filing with Bursa Malaysia.
The group announced on Aug 14 that IITS had received the notice of termination dated Aug 10.
Three months earlier, the ministry had extended the NIISe contract by 12 months from Sept 1, 2025 to Aug 31, 2026.
The contract worth RM1.16 billion was first awarded to IITS in January 2021 for a period of 54 months, from March 1, 2021 to Aug 31, 2025.
NIISe is an initiative under KDN to upgrade the IT infrastructure system at the Immigration Department by implementing the latest digital applications to improve service delivery, and strengthen safety and security at the nation’s borders.
Home Minister Datuk Seri Saifuddin Nasution Ismail had earlier said that there was a possibility that the NIISe contractor would be replaced if the company was unable to implement the project. Prior to the contract extension, Saifuddin had said that the project had not achieved adequate progress as of March.
Iris is in the midst of selling an 80% stake in IITS for RM70 million to Tass Tech Technologies Sdn Bhd, with the proceeds to be used for the group’s working capital and future business expansion.
For the financial year ended March 31, 2023 (FY2023), Iris posted a net profit of RM21.9 million, more than six times the RM3.41 million reported for FY2022, as revenue jumped 65.35% to RM348.87 million from RM210.99 million, mainly due to higher delivery of cards and e-passports for overseas projects.
Iris’ share price closed flat at 7.5 sen on Tuesday, valuing the group at RM244.72 million. The stock has fallen 46.43% since the beginning of this year.