Vincent Tan applies for leave to initiate judicial review

KUALA LUMPUR: Berjaya Group founder Tan Sri Vincent Tan has applied for leave to initiate judicial review against the government's decision to terminate his company's Letter of Intent (LoI) for a multi-million ringgit vehicle fleet concession.

The tycoon, through Cekap Urus Sdn Bhd, filed the application at the High Court and named the government, Finance Minister, and Spanco Sdn Bhd as the respondents.

Tan claimed that the group, in a consortium with Naza Group, had been picked to manage the fleet concession by the previous administration through a LoI issued in 2018.

Berjaya formed a 49:51 consortium with Naza in 2018 to jointly bid for the lucrative contract, which reportedly involved around 12,500 vehicles worth an estimated RM300 million annually starting after the fifth year.

Tan said the consortium had received the LoI from the Finance Ministry to replace the fleet management provider Spanco Sdn Bhd.

However, he said the government, under the then prime minister Tan Sri Muhyiddin Yassin, terminated their LoI and gave the tender to Spanco, which was RM700 million more expensive than their own tender.

The applicant is seeking a court declaration that the termination of their LoIl by the first respondent is invalid, null, and void.

Tan is also seeking a declaration that the government and finance minister's decision to award the tender to Spanco through direct negotiation is invalid, null and void.

The applicant also sought a mandamus order to compel the government and MoF to carry out the necessary action in the letter awarded to Cekap Urus on Dec 11, 2019.

High Court judge Datuk Ahmad Kamal Md Shahid has fixed Aug 24 to hear the application.

In February 2018, the government called for proposals for the contract to supply, maintain and manage its fleet of official vehicles for the next 15 years.

Proposals were reportedly received from at least seven companies.

Aside from the Naza-Berjaya consortioum, other bidders were Sime Darby Bhd, DRB-HICOM Bhd, Samling Group, Comos, Go Auto and Spanco, which had managed the concession since 1994.

According to Tan, the Naza-Berjaya consortium had won the bidding with the lowest offer.