This article first appeared in The Edge Malaysia Weekly on May 27, 2024 - June 2, 2024

TOP-level executives from Pertama Digital Bhd (KL:PERTAMA) and their counterparts from the Ministry of Finance are in talks to formalise a contract for eJamin — an online system that provides  bail payment service for local courts, sources say.

Pertama Digital’s 51%-owned subsidiary, Television Airtime Services Sdn Bhd, has an 80% stake in Dapat Vista Sdn Bhd, which operates eJamin. The system is used in as many as 188 courts for payment of bail.

It is understood that the formalising of a contract with the government will entail a more stringent structure with para­meters being drawn up for the service. It will also give Dapat Vista some exclusivity for eJamin, and possibly allow the company to seek similar projects with the government.

Pertama Digital executive director Sabri Ab Rahman declined to comment when contacted by The Edge.

Nevertheless, one source familiar with the matter says: “There will be parameters from now on [once the contract is signed by Pertama Digital]. There will be clauses such as the percentage of downtime allowed; the government’s aspirations for eJamin will be articulated and basic parameters of operations will be set.

“On the flip side, this contract will ease Dapat Vista’s aspirations in getting other such contracts for other services from the government … In a nutshell, it’s the government recognising Dapat Vista and eJamin as a service provider, basically from being used on an ‘as is where is basis’, which is volatile for earnings, to something more secure and long term, say 10 or 20 years — akin to a concession.”

The other shareholders of Television Airtime Services are Sabri with 27% and Khairul Amanda Sabri with 22%. Dapat Vista’s remainder 20% is held by technology outfit HeiTech Padu Bhd (KL:HTPADU).

According to its 2023 annual report, eJamin, which was launched in January 2020, has reduced the bail payment process from about three hours to a mere 15 minutes, and eJamin has facilitated efficient bail collections exceeding RM100 million.

This contract formalisation between Dapat Vista and the government comes on the back of the company receiving a directive from the Office of the Chief Registrar of the Federal Court of Malaysia on April 30, “mandating the transfer of all eJamin funds and accrued interest to the Main Receiving Account of the Prime Minister’s Department”.

The directive goes on to add that, “The mandate necessitates the cessation of the eJamin system and a reversion to conventional bail processes effective May 19, 2024.”

Pertama Digital announced the receipt of this letter on May 16. In response, in its announcement to Bursa Malaysia, the company said: “Dapat Vista is working towards obtaining the approval from the relevant regulatory authorities to continue providing services via eJamin moving forward.”

While details are scarce, The Edge understands that the issue with Dapat Vista hinged on certain parties terming the company’s bail payment services as deposit-taking, which is frowned upon. Under the Financial Services Act 2013, the act of receiving, taking or accepting deposits that promise a return requires a valid licence. Dapat Vista collecting bail money raised questions as the funds that are parked with banks accrue interest, a percentage of which Dapat Vista takes.

According to sources, the issue of deposit-taking was being sorted out when the directive from the Office of the Chief Registrar of the Federal Court came out.

On May 20, Pertama Digital announced to the local bourse that on May 17, “the Prime Minister’s Department, Legal Affairs Division has made an announcement on the continuance of eJamin services at all applicable courts in Malaysia”.

The source familiar with the matter adds: “With the contract being formalised, the banks that are involved with Dapat Vista will have a direct responsibility to the courts as opposed to the current more lax system.”

It remains to be seen if the contract being firmed up will open the doors for more such jobs for Dapat Vista and Pertama Digital and give its bottom line a boost.

For its financial year ended Dec 31, 2023 (FY2023), Pertama Digtal suffered a net loss of RM6.6 million from RM6.18 million in revenue. In FY2022, the company suffered a net loss of RM39 million from RM8.76 million in turnover.

As at end-December 2023, Pertama Digital had cash and bank balances of RM162.69 million and fixed deposits with licensed banks of RM8.15 million. On the other side of the balance sheet, it had current liabilities of RM8 million, with no long-term debt commitments. It also had accumulated losses of RM40.53 million.

Pertama Digital was previously Sinotop Holdings Bhd, but the management of Pertama Digital, when it took over, hived off Be Top Group Ltd — the main asset under Sinotop — for RM65 million in August 2022. The new business, eJamin, started off in January 2020.

Dapat Vista, for its FY2022 ended Dec 31, 2022, chalked up an after-tax profit of RM209,100 on the back of RM8.55 million in turnover. As at end-FY2022, the company had total assets of RM151.59 million and total liabilities of RM137.41 million, with accumulated losses of RM8.66 million.

Pertama Digital’s substantial shareholders are Hong Kong-based Perfect Hexagon Commodity & Investment Bank Ltd with a 22.78% stake, MyPay Capital Sdn Bhd — the vehicle of Sabri and former chief justice Tun Zaki Tun Azmi — with 10.04%, prominent lawyer Tan Sri Nik Norzrul Nik Hassan Thani with 11.44%, and CGS International Securities Malaysia Sdn Bhd with 7.13%. Sabri also has a direct 2.33% stake in Pertama Digital.

Last Friday, Pertama Digital closed at RM2.46 a share, translating into a market capitalisation of RM1.08 billion. 

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