The Kuala Lumpur (KL) Courts Complex, which situates the KL High Court. (The Edge filepix by Suhaimi Yusuf)

KUALA LUMPUR (Oct 30): The High Court on Wednesday reinstated the legal action by Cekap Urus Sdn Bhd against Spanco Sdn Bhd and the government, over the government fleet car project.

This follows Cekap Urus having withdrawn its notice of discontinuance that it filed last August, and is now continuing its legal challenge.

As a result of this, High Court judge Datuk Ahmad Kamal Md Shahid fixed March 12, 2025, to hear the merits of the judicial review.

Ahmad Kamal also ordered Cekap Urus to pay costs of RM1,000 to the government and Spanco.

Cekap Urus was represented by Chuar Kia Lin, while Spanco was represented by Razlan Hadri Zulkifli, Navpreet Singh and Edmund Choi, while federal counsel Mohammad Sallehuddin Md Ali appeared for the government.

Cekap Urus — a joint-venture (JV) between Tan Sri Vincent Tan’s Berjaya Corp Bhd (KL:BJCORP), Naza Corp Holdings Sdn Bhd, and Tunku Tun Aminah Sultan Ibrahim Ismail — was given the letter of intent (LOI) by the Ministry of Finance (MOF) for the government fleet car contract in early 2019.

Berjaya controls a 51% stake in the JV, and Naza holds 29%, while the daughter of Malaysia’s current King has 20%.

However, on Dec 11, 2019, the government decided to cancel or terminate the LOI for the supply and management of the government vehicle fleet, and gave the contract to Spanco instead, leading to Cekap Urus challenging the termination through the judicial review.

Cekap Urus is seeking to invalidate the LOI termination, and the company also asked the court for a declaration that the government’s and ministry’s decision to award Spanco the fleet project through direct negotiation was invalid, null and void, and has no effect.

The JV demanded a certiorari order to quash the government’s decision on Jan 25 this year in dismissing Cekap Urus’ appeal against the termination. Further, it has also requested a mandamus order to compel the government to execute the letter awarded to Cekap Urus.

Further, Cekap Urus sought a stay of the government’s and ministry’s decision, pending determination of the matter, as well as damages and costs to be assessed.

On Aug 2, Cekap Urus filed a notice of discontinuance with liberty to file afresh with no cost, while Spanco had asked for cost for the withdrawal of the action. The federal government did not object to Cekap Urus’ application.

Cekap Urus had filed and received leave for a judicial review on the termination of the company’s government vehicle fleet project, which was awarded to Spanco.

Spanco’s chairman Tan Sri Robert Tan Hua Choon was then charged in April this year, and he claimed trial to cheating the MOF over the contract to supply, maintain and manage government fleet cars, worth RM3.966 billion. Tan’s trial is still pending.