Public Accounts Committee chairperson Datuk Mas Ermieyati Samsudin said the Public Accounts Committee was surprised by the High Court's decision, which ordered the government to pay a sum of RM231.5 million to Awanbiru Technology Bhd (Awantec), formerly known as Prestariang Bhd, for the termination of the National Immigration Control System (SKIN) project.

KUALA LUMPUR (March 27): The Public Accounts Committee (PAC) is set to launch an investigation into the National Integrated Immigration System (NIISe) project, its chairperson said.

The committee was surprised by the High Court's decision, which ordered the government to pay a sum of RM231.5 million to Awanbiru Technology Bhd (Awantec), formerly known as Prestariang Bhd, for the termination of the National Immigration Control System (SKIN) project, Datuk Mas Ermieyati Samsudin said at a news conference.

Notably, the amount awarded to Awantec was only one-third of the company’s RM733 million claim in relation to the project termination.

The committee plans to summon witnesses from the Home Ministry, Immigration Department, Malaysian Administrative Modernization and Management Planning Unit as well as cybersecurity experts and vendors involved in NIISe and SKIN, she said.

The proceedings are expected to take place after the Hari Raya celebration and will be conducted under Dewan Rakyat’s Standing Order 77(1)(d), Mas Ermieyati noted.

Both the SKIN and NIISe projects aim to replace the Malaysian Immigration System (myIMMs), which has been in place for over 20 years.

The SKIN project, valued at RM3.5 billion, was awarded to Prestaring Skin Sdn Bhd (PSKIN) back in August 2017 by the previous Barisan Nasional government under Datuk Seri Najib Razak's administration.

However, in December 2018, the Pakatan Harapan government led by Tun Dr Mahathir Mohamad decided to terminate the project in favour of a new system to save government funds.

In April 2019, Awantec took legal action against the government, seeking RM733 million for the termination of the SKIN project, which had a 15-year contractual agreement. Both parties failed to reach an agreement following talks, leading PSKIN to pursue legal recourse.

After a five-year legal battle, the High Court ruled in favour of Awantec on March 14 this year, ordering the government to pay RM231.55 million plus legal costs incurred during the litigation process. Additionally, the court directed the payment of RM80,000 for the final legal fees.

Meanwhile, the NIISe project, valued at RM1.16 billion, was initially awarded to Iris Corp Bhd in January 2021 but was later scrapped by the current administration through a notice dated Aug 10, 2023, with effect from Aug 14, 2023.

Iris announced its intention to take its dispute with the Home Ministry over the cancellation of its contract for the NIISe project to arbitration.

The Home Ministry is currently undertaking the bidding process for the NIISe 2.0 project, with three companies reportedly shortlisted by the government, namely Dagang NeXchange Bhd (DNeX), HeiTech Padu Bhd, and Theta Edge Bhd, as reported by The Edge.