KUALA LUMPUR (Aug 1): Datasonic Group Bhd said today the ongoing lawsuit between its wholly-owned unit Datasonic Technologies Sdn Bhd (DTSB) and Percetakan Keselamatan Nasional Sdn Bhd (PKN), a wholly-owned subsidiary of Fima Corp Bhd, will not affect its five-year contract with the government to supply Malaysian passport booklets.
In a filing with Bursa Malaysia today, Datasonic said the dispute with PKN is over the pricing for each Malaysian passport booklet that had been delivered to DTSB from Dec 1, 2016 to May 31, 2017 when PKN was appointed as a subcontractor.
"The legal suit will not affect DTSB’s Malaysian passport booklets contract with the government for the period of five years as PKN is only our appointed subcontractor for that interim period of six months only," it added.
To recap, DTSB had on April 27, 2016 bagged an award from the Home Affairs Ministry for the supply of 13.42 million Malaysian passport booklets to the Immigration Department from Dec 1, 2016 to Nov 30, 2021.
Following which, DTSB had appointed PKN as a subcontractor to deliver the first 1.5 million old Malaysian passport design booklets from Dec 1, 2016 to May 31, 2017 and a copy of draft agreement was sent to PKN based on DTSB offered price.
According to Datasonic, PKN did not agree on DTSB offered price, but continue to supply the old Malaysian passport booklets in which time the pricing for each old Malaysian passport booklet has still not been agreed upon by both parties.
"As a result, no agreement was signed but PKN had decided to deliver the 1.5 million old Malaysian passport designed booklets with full understanding that pricing were to be agreed upon at future date," it added.
Datasonic said it will continue to pursue for amicable settlement with PKN, failing which, the group will leave it to the court to determine the fair price.
On July 30, PKN had launched a legal action against DTSB, claiming RM24.98 million in unpaid dues.
In a separate filing today, Datasonic said DTSB has received the writ of summons together with the statement of claim filed by PKN against it. The suit has been fixed for case management on Aug 17.
"The suit will not have any significant financial and operational impact on the group for the financial year ending March 31, 2019. The group is expected to assume a contingent liability of approximately RM5 million in relation to the suit," it added.
Datasonic said it has instructed its solicitors to look into the matter and will make the appropriate announcements to Bursa as and when there are material developments.
Meanwhile, Datasonic said DTSB has commenced producing and supplying the new design of Malaysian passport booklets since September last year.
"The official launch of the new design Malaysian passport booklets from four icons to 12 icons that incorporated the design concept of flora and fauna, batik, songket and five national principles of Malaysia (Rukun Negara), of which the old Malaysian passport does not possess these feature, was done in January," it said.
Fima shares ended the morning session unchanged at RM1.98 today, with a market capitalisation of RM476.17 million, while Datasonic shares were unchanged at 81 sen, valuing it at RM1.09 billion.