Tan Sri Vincent Tan sues Malaysian gov’t, Spanco over Naza-Berjaya’s lack of car fleet concession deal

Tan Sri Vincent Tan has filed a go well with in opposition to the finance ministry and fleet administration firm Spanco over a multi-million ringgit car fleet concession deal misplaced by Naza-Berjaya after the consortium had been awarded the rights to it, the New Straits Times reviews.

In response to the Berjaya group founder, the Naza-Berjaya consortium was picked by the federal government to deal with the fleet concession by the earlier administration by a letter of intent (LoI) that was issued in 2019.

The consortium was set to interchange Spanco because the fleet administration supplier, however the transfer by no means got here to mild, with Tan saying that the federal government unfairly terminated the settlement with Naza-Berjaya earlier than the precise award was on account of be introduced.

As such, the consortium is in search of justice by authorized means. “We now have filed a lawsuit in opposition to the ministry on this, and we’re ready to go to court docket this yr. You’ll hear extra of this down the street,” he mentioned earlier right now.

In February 2019, the federal government known as for proposals for the contract to provide, keep and handle its fleet of official automobiles for the subsequent 15 years. Proposals have been reportedly acquired from at the least seven corporations for the brand new concession.

Except for the Naza-Berjaya consortium, fashioned underneath a 51:49 partnership to bid for the contract, different bidders included Sime Darby, DRB-Hicom, Samling Group, Comos and Go Auto in addition to incumbent supplier Spanco.

In response to Tan, the Naza-Berjaya consortium had gained the bidding with the bottom provide. “We gained the contract because the lowest bidder and received the LoI. However then the federal government modified and Tan Sri Muhyiddin Yassin turned the prime minister. Three months after that, we received a discover that our LoI had been terminated,” he mentioned.

Tan mentioned the federal government then gave the tender to Spanco, regardless of the Naza-Berjaya tender being RM700 million cheaper than Spanco’s. He questioned why the administration at that time had agreed to pay RM700 million extra for that deal. “Possibly the brand new authorities thought that Berjaya and Naza are usually not adequate within the automobile upkeep enterprise or the automobile enterprise,” he urged.

He mentioned the consortium had modified its shareholder settlement, elevating the Bumiputera stake in it to 60%. “Berjaya’s stake is now right down to 40%. Hopefully, we’ll get beneficial outcomes from a court docket choice,” he added.

Spanco was awarded the contract to handle end-to-end fleet administration of presidency autos in 1994. Its 25-year concession got here to an finish in December 2018, however the firm was given two extensions of six months every in 2019 to proceed managing the fleet till the tip of that yr, with a 3rd extension reportedly given till June 2020.

The federal government’s fleet, all leased by a five-year substitute cycle association, contains autos utilized by ministers and high civil servants, in addition to police patrol autos. The five-year substitute cycle was meant to make sure the federal government’s fleet stayed present, with the upkeep value of every of those autos capped at pre-determined limits.

Whereas the worth of the brand new concession was by no means revealed, it has been estimated that, based mostly on the present fleet of 12,500 autos again in 2020, the contract could possibly be value RM300 million a yr from the fifth yr onwards

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