Prestariang won't challenge SKIN project termination but will claim compensation

KUALA LUMPUR: Prestariang Bhd says it accepts the government’s decision to terminate a RM3.5 billion project with the Immigration Department.

Prestariang, which owns a 70 per cent stake in the project undertaken by Prestariang SKIN Sdn Bhd, said following clarification with the government, they had mutually agreed that the termination of the concession will take effect on January 22, 2019.

“We wish to reiterate that our subsidiary is not in default of the concession agreement. However, we respect the decision of the government to exercise its rights to terminate the concession by expropriation in accordance with the terms of the concession agreement,” Prestariang said in a statement today.

“We do not intend to challenge the termination of the concession,” it added.

Prestariang said its subsidiary is entitled to a compensation and was currently in discussions with the government to settle the issue amicably.

Prestariang had, in August 2018, signed a concession agreement with the government for the implementation of an integrated and comprehensive core immigration system known as Sistem Kawalan Imigresen Nasional (SKIN).

Prestariang’s subsidiary had received a letter dated December 11, 2018 from the Home Affairs Ministry confirming the Cabinet’s decision to terminate the SKIN project by way of expropriation.