Friday 29 Mar 2024
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KUALA LUMPUR (Oct 30): Prestariang Skin Sdn Bhd, a subsidiary of Prestariang Bhd, had engaged in nearly two hours of mediation with Immigration Department director-general Datuk Khairul Dzaimee Daud over its suit following the termination of the RM3.5 billion National Immigration Control System (SKIN) project.

Also spotted in court was Prestariang Skin chief executive officer Raja Azmi Adam Nadarajan.

The mediation was done before High Court Justice Azizul Azmi Adnan in court with further mediation scheduled for Jan 23 next year.

Also present were Prestariang's lead counsel Datuk Lim Chee Wee and senior federal counsel Ahmad Hanir Hambali, who is appearing for the Government, the defendant in the suit.

Theedgemarkets.com understands that the Immigration Department along with the Government and the company want to settle the matter amicably.

However, the department has to obtain Cabinet approval for any settlement proposed.

Meanwhile, at another court hearing later, the Government failed in its attempt to have Prestariang's suit be converted from an originating summons (OS) to a writ.

The decision was made by Justice Datuk Mohd Sofian Abdul Razak, who also ordered the Government to pay costs of RM2,000 to Prestariang.

A conversion of an OS to a writ would allow the defence — which in this case is the Government — to cross-examine the witnesses, while the originating summons does not necessitate the calling of witnesses, with answers to questions to be provided via affidavits.

Justice Sofian also fixed July 1 to 3 as new hearing dates for the contractual payment suit should the mediation fail.

In the suit it filed in April, Prestariang is seeking RM732.86 million in damages from the Government for unilaterally terminating the SKIN contract that was awarded to its unit, Prestariang Skin Sdn Bhd, in 2017.

The contract was terminated by the Home Ministry on Jan 22.

Prestariang’s president and group chief executive officer Dr Abu Hasan Ismail, had in an interview with The Edge said: “We were as big as RM1.3 billion to RM1.4 billion, and now we are at RM200 million (market capitalisation). The shareholders are losing a lot. You have to think of the value that is being destroyed. To me, [it was] something that could have been easily resolved, given a chance. Now, we have no choice because we have shareholders, it is our fiduciary duty to take the Government to court.”

Prestariang closed today at 48.5 sen, giving it a market capitalisation of RM734.74 million.

The share has lost some 43.6% from a high of 86 sen in the past year.

Abu Hasan, who is also the company’s founder, added that when the Home Ministry was reportedly reviewing the SKIN project last year as it felt the project was expensive, the company had repeatedly tried but failed to fix a meeting with the Ministry to see if there was a scope for lowering costs.

But following the termination of the project, he said it was no longer about negotiations to revise the price but to ensure the company gets its due compensation.

The Government has since reopened the tender for the SKIN project, which is said to have attracted bids ranging from RM1 billion to RM1.8 billion from some 30 bidders.

Ahmad Hanir had in his submissions told the court last month that it was not disputed that the development cost of the system would be borne by the plaintiff, Prestariang.

“But again as this is the initial stage [of the project], we are questioning the quantum [of the damage claimed]. Going by their claim of allegedly 9% [completion] with let’s say the project costing RM800 million [to develop], the losses or damages should not amount to over RM700 million,” Ahmad Hanir said.

Lim had told the court that the issue concerns contractual law and that the terms of the contract had been agreed on by both parties and documented.

"However with the Government exercising its contractual right to terminate contract, it should result in contractual payment due from the Government to Prestariang," he said.

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