KUALA LUMPUR (March 14): Awanbiru Technology Bhd (Awantec or formerly known as Prestariang Bhd) has won its legal suit against the government over the termination of the RM3.5 billion National Immigration Control System (SKIN) project.

According to Awantec’s filing with Bursa, the High Court ruled in favour of Awantec's wholly-owned unit, Prestaring Skin Sdn Bhd (PSKIN) and ordered the government to pay a judgment sum of RM231.55 million, plus legal costs incurred by PSKIN during the litigation process. The court has directed a payment of RM80,000, with the amount subject to allocatur fees.

Additionally, the government has been instructed to pay post-judgment interest of 5% per annum on the judgment sum.

Judge Datuk Seri Latifah Mohd Tahar delivered the decision on Thursday. PSKIN was represented by Messrs Lim Chee Wee Partnership, added the filing.

The dispute dates back to April 2019 when PSKIN initiated legal proceedings against the government, claiming RM732.86 million for the termination of the SKIN project, which had a 15-year contractual agreement.

Despite several rounds of negotiations, both parties failed to reach a consensus on the quantum to be paid by the government, leading PSKIN to seek recourse through the legal system.

To recap, PSKIN secured the RM3.5 billion SKIN project in August 2017 from the previous Barisan Nasional government under Datuk Seri Najib Razak’s administration to replace the Malaysian Immigration System (myIMMs).

A year later in December 2018, the then Pakatan Harapan government helmed by Tun Dr Mahathir Mohamad decided to scrap the project in favour of a new system that would save government funds. 

Shares of Awantec climbed 5.88% or three sen to 54 sen at Thursday's noon break, giving it a market capitalisation of RM422.36 million.

https://www.theedgemarkets.com/node/704578