This article first appeared in The Edge Malaysia Weekly on May 20, 2024 - May 26, 2024

The cornerstone of Pertama Digital Bhd’s (KL:PERTAMA) revival is its mandate to manage the digital court bail system called e-Jamin. But now that concession, which has been the main revenue earner that has brought the company back to profitability, is in jeopardy.

Last week, Pertama Digital disclosed that the e-Jamin system had been suspended. It said a letter from the Chief Registrar of the Federal Court had ordered the cessation of the e-Jamin system, and reversion to the conventional bail process from May 19. Pertama Digital was also ordered to transfer all the bail funds in the system to the Prime Minister’s Consolidated Fund.

The announcement is a setback for Pertama Digital, which has been working on a regularisation plan since August 2022 to expand its existing e-payment business. This is to address the company’s status as an affected issuer under Bursa Malaysia’s listing rules for having an inadequate level of operations to remain as a listed entity.

Pertama Digital has not given up hope of getting back the mandate to manage the e-Jamin system. It said it was working towards obtaining approval from the relevant regulatory authorities to continue providing the services.

But surely minorities would want more details on what happened for the Chief Registrar of the Federal Court to suddenly pull back the mandate? And what are the approvals it is trying to obtain to get back the mandate to manage the system?

Pertama Digital may not be able to disclose the full details of the reason behind the cessation order. However, it should at least reveal more about the measures it is taking to get back the mandate.

The revenue from managing the e-Jamin system is crucial for Pertama Digital, whose shareholders include former chief justice Tun Zaki Tun Azmi and whose chairman is Datuk Ahmad Nazri Abdullah. Without e-Jamin, the going will be difficult for the company.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.