corporate

IJN to pay Theta Edge RM1.3m to settle dispute over record management system contract termination

KUALA LUMPUR:  Theta Edge Bhd on Friday announced that its unit will receive RM1.3 million from Institut Jantung Negara (IJN)  as settlement of a dispute over the termination of a hospital information management system and electronic medical record contract, two-years into the contract.

Theta Edge's Theta Technologies Sdn Bhd (TTSB) was awarded a four-year development contract worth RM25.2 million (inclusive of service tax) by IJN on Feb 25, 2021.

On Mar 17, 2023, TTSB was given notice of termination of the contract by IJN, for an alleged default. No subsequent announcements were made on the matter until last Friday.

In a filing with Bursa Malaysia Securities Bhd, the information technology services provider said both parties resolved their disputes and differences amicably without admission of any liability to each other.

Theta Edge said the settlement arrangement between IJN and TTSB will not have a material financial impact for the company's financial year ended Dec, 31 2023.

A report in a business weekly citing sources listed Theta Edge as one of two companies in the running for the multi-billion ringgit National Integrated Immigration System (NIISe) project.

The project is to integrate border control systems of various agencies under the Ministry of Home Affairs.

The report said the contract may be award by end-June.

Theta Edge posted a net loss of RM2.9 million for the first quarter ended Mar 31, 2024, compared with a net profit of RM185,000 net profit the year before.

In its filing with Bursa Securities, the company said the losses were attributed to lower margins from its telecommunication segment with its Jendela project nearing completion.

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