Berjaya, Naza sue Putrajaya over aborted fleet supply job

Berjaya, Naza sue Putrajaya over aborted fleet supply job

KUALA LUMPUR, July 17 — Berjaya Corporation Bhd (BCorp) founder Tan Sri Vincent Tan said a joint venture firm between his company and Naza Corporation Holdings Sdn Bhd is suing the Ministry of Finance for withdrawing a letter of intent for the supply of vehicles to the government.

According to The Edge Malaysia, Tan said the LOI was terminated in 2020 after Tan Sri Muhyiddin Yassin took over as prime minister following Tun Dr Mahathir Mohamad’s resignation.

“They (government) terminated us and gave it to Spanco (Sdn Bhd). The government agreed to spend RM700 million more (compared to both groups’ LOI). The government thinks Berjaya and Naza are not good enough in the car business.

“So, we have filed a legal suit against [the] MOF on this and we are ready to go to court on this. You will hear more of this down the road,” he was quoted as saying.

According to Tan, the bid submitted by the JV was the cheapest among all bidders.

In August 2019, seven companies bid for the lucrative contract to supply fleet vehicles to the government upon the expiration of Spanco’s contract at the end of that year.

The contract was to run for 15 years and would involve around 12,500 vehicles worth an estimated RM300 million annually starting after the fifth year.

These include official cars used by ministers and senior government officials as well as departmental fleets and police patrol vehicles.

However, Spanco was given an extension to manage the fleet and eventually joined the bidding war.