KUALA LUMPUR: Prestariang Bhd, whose shares has plunged to 30.5 sen today, said it has not received any notice of default from the government relating to the cancellation of the Immigration Department's RM3.5 billion Sistem Kawalan Imigresen Nasional (SKIN) concession.
"Prestariang board of directors wish to clarify that as of to date, Prestariang SKIN is not in default of the Concession Agreement and has not received any notice of default from the government," the company told the stock exchange.
Bursa Malaysia suspended proprietary day trading (PDT) and intraday short selling (IDSS) of Prestariang shares for the rest of the day.
The PDT and IDSS activities will only be enabled tomorrow 11th December 2018, at 8:30am, the stock exchange said.
"Prestariang SKIN will seek clarification from the government on this matter and will make the necessary announcement once there is any update in relation to the above," Prestariang exchange filing said.
Home Minister Tan Sri Muhyiddin Yassin today said the Cabinet has agreed to scrap the RM3.5 billion (SKIN) project.
SKIN, to be implemented in 2021, is a border protection control systems proposed by Prestariang Bhd to replace the existing Malaysian Immigration System (myIMMs).
Prestariang, which has a 70 per cent stake in the project, had roped in French defence, technology and security firm Thales Communications & Security SAS, whereby its Malaysian unit Thales Malaysia Sdn Bhd to carry out the project.
In July 2017, Prestariang through its subsidiary, Prestariang Skin Sdn Bhd, signed a concession agreement for 15 years with the Home Ministry to replace myMIMs.
Muhyiddin, who had announced the termination to take effect on 19th January 2019, has directed the Home Ministry to discuss with Prestariang to determine the appropriate amount of compensation to be paid due to the project cancellation.
“We will pay compensation that is proportionate to what they have started and we believe the amount will not be too big,” Muhyiddin said.