KUALA LUMPUR (Aug 22): Cekap Urus Sdn Bhd, a joint venture between Berjaya Group and Naza Group, has filed a notice of discontinuance over its legal action against the Malaysian government, the Ministry of Finance (MOF) and Spanco Sdn Bhd for the termination of the company’s services in a vehicle fleet project for the government.

The notice of discontinuance was filed at the High Court on August 2.

Cekap Urus, which is 51% owned by Berjaya’s Tan Sri Vincent Tan Chee Yioun, 29% owned by Naza Corp Holdings Sdn Bhd and 20% owned by Tunku Tun Aminah Sultan Ibrahim Ismail, had asked to discontinue the judicial review with liberty to file afresh with no order as to costs.

The case management was done before High Court senior assistant registrar Lee Ka Full on Thursday, where the court was briefed on the matter.

Cekap Urus’ counsel, Chuar Kia Lin, when contacted by The Edge, said the government and the finance ministry did not object to the discontinuance application, but Spanco, which had been awarded the government fleet project, sought costs and for Cekap Urus’ withdrawal of the action to be with no liberty to file afresh.

When contacted, Spanco’s counsel Razlan Hadri Zulkifli confirmed that it was asking for costs and also seeking for Cekap Urus to withdraw the action with liberty not to file afresh.

Following this, Lee fixed case management for September 3 before High Court judge Datuk Ahmad Kamal Md Shahid, on whether parties can reach a consensus on the withdrawal, and if not, the court could possibly make a ruling that day, Chuar added.

On April 20, last year, Cekap Urus filed a judicial review to challenge the government’s decision to cancel its contract award of a vehicle fleet project for the government.

This followed the government’s decision to cancel or terminate the letter of intent (LOI) for the supply and management of the government vehicle fleet, awarded to Cekap Urus via a letter dated Dec 11, 2019.

Cekap Urus claimed the termination to cancel, or terminate to cancel, or terminate the LOI, was invalid, null and void, and has no effect.

Thus, it sought a declaration that the government and the ministry’s decision to award Spanco the fleet project through direct negotiation is invalid, null and void, and has no effect.

Besides this, Cekap Urus sought a certiorari order to quash the government and ministry’s decision on January 25, last year, in dismissing Cekap Urus' appeal against the government’s decision to terminate the LOI.

It also sought a mandamus order to compel the government and MOF to carry out the necessary action in the letter awarded to Cekap Urus on Dec 11, 2019.

The High Court had granted leave (permission) for Cekap Urus to challenge the decision on August 23, last year, and subsequently, there had been hearings this year.

It was also reported that Spanco’s chairman, Tan Sri Robert Tan Hua Choon, had in April claimed trial to cheating the Finance Ministry over a contract to supply, maintain and manage government fleet cars worth RM3.966 billion.

Hua Choon, 83, is charged with cheating the ministry’s private and public cooperation unit between Feb 27 and 28, 2019, for misrepresenting that Spanco had at least 30% Bumiputera interest in the tender process, resulting in the company securing the contract. The charge sheet, however, did not provide details on what was allegedly false about the Bumiputera equity.

The trial against Hua Choon is still pending at the Sessions Court, where case management has been fixed for October 2.