Tan Sri Vincent Tan has filed a suit against the finance ministry and fleet management company Spanco over a multi-million ringgit vehicle fleet concession deal lost by Naza-Berjaya after the consortium had been awarded the rights to it, the New Straits Times reports.
According to the Berjaya group founder, the Naza-Berjaya consortium was picked by the government to handle the fleet concession by the previous administration through a letter of intent (LoI) that was issued in 2019.
The consortium was set to replace Spanco as the fleet management provider, but the move never came to light, with Tan saying that the government unfairly terminated the agreement with Naza-Berjaya before the actual award was due to be announced.
As such, the consortium is seeking justice through legal means. “We have filed a lawsuit against the ministry on this, and we are waiting to go to court this year. You will hear more of this down the road,” he said earlier today.
In February 2019, the government called for proposals for the contract to supply, maintain and manage its fleet of official cars for the next 15 years. Proposals were reportedly received from at least seven companies for the new concession.
Aside from the Naza-Berjaya consortium, formed under a 51:49 partnership to bid for the contract, other bidders included Sime Darby, DRB-Hicom, Samling Group, Comos and Go Auto as well as incumbent provider Spanco.
According to Tan, the Naza-Berjaya consortium had won the bidding with the lowest offer. “We won the contract as the lowest bidder and got the LoI. But then the government changed and Tan Sri Muhyiddin Yassin became the prime minister. Three months after that, we got a notice that our LoI had been terminated,” he said.
Tan said the government then gave the tender to Spanco, despite the Naza-Berjaya tender being RM700 million cheaper than Spanco’s. He questioned why the administration at that point had agreed to pay RM700 million more for that deal. “Maybe the new government thought that Berjaya and Naza are not good enough in the car maintenance business or the car business,” he suggested.
He said the consortium had changed its shareholder agreement, raising the Bumiputera stake in it to 60%. “Berjaya’s stake is now down to 40%. Hopefully, we will get favourable results from a court decision,” he added.
Spanco was awarded the contract to manage end-to-end fleet management of government vehicles in 1994. Its 25-year concession came to an end in December 2018, but the company was given two extensions of six months each in 2019 to continue managing the fleet until the end of that year, with a third extension reportedly given until June 2020.
The government’s fleet, all leased through a five-year replacement cycle arrangement, includes vehicles used by ministers and top civil servants, as well as police patrol vehicles. The five-year replacement cycle was meant to ensure the government’s fleet stayed current, with the maintenance cost of each of these vehicles capped at pre-determined limits.
While the value of the new concession was never revealed, it has been estimated that, based on the current fleet of 12,500 vehicles back in 2020, the contract could be worth RM300 million a year from the fifth year onwards
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“We bid the lowest and it is RM700m cheaper than Spanco.” Wow! Sapu Bersih and Stabil RM700m.
Only comes here to read the comments. Walanon vs walaun yeah!
TS Muhyiddin’s government cancelled the contract, then the present government which is unMuhyiddin got sued? How ironic.
Really? Did you read this article? You seems you are PN supporters right?
Toon support U
jgn bimbang !!!!
You should know why PN loves corruption, but didn’t lots of contribution while making more business to close down
Basically PH crony & main sponsor made his bet and won big when PH became gomen, manatau they were kicked out just as VT was reaping the rewards for backing them, and so was replaced by Muhyiddin crony. Now that PH is back in gomen he wants his share back but too bad he was also a Mahathir (the reason he backed PH actually) and now he found himself cut out by Anwar’s own established crony (and PKR sponsor), YTL.
In other words, this is a crony vs crony fight. People thought their votes could make change but we just change from Right pocket to Left pocket. True change meant rejecting either political sides and go for a 3rd option, like PN, free from Mahathir and Anwar tendrils.
3rd option, wait another party but sorry known as Tun M proxy and PN related party
isn’t this back to square one? at least mahathir crony only charge 300 million, cheaper than PN crony charging 300m + extra 700m.
that guy’s comment also proves that he switched allegeiance to PN after his BN allied with PH
well that is how the legal system works.
That is how the legal follows new govt order works.
But for PN own doing, not this new government. Dah baca artikel ni?
you dont sue to person. you sue the company/government. Regardless who is helming it.
What contract?
Its only LOI, no contract signed yet.
But legally, LOI is not considered as a contract.. Or a legal contract…
I think it is just PR move bt Vincent Tan just to show he is not TSMY man and to boost the claim he mentioned the MYR700 million figure. So now he will surely flexing to show he concern to save G coffers, so lets appoint me.
LOI is Gomen lingo for awarding contracts, once LOI is given usually it is followed by LOA (the award contract itself). Both are legal contracts but legalspeak the Gomen is house and the house always wins.
the main point of this sue is to expose that 700m price diff. dont too serious with all the details, but effect of let ppl know those so called BERSIH aint bersih at all
LoI is just like a preliminary draft of an actual contract, LoI isn’t usually legally binding unless if it’s designed otherwise. Usually it’s only to point out the fundamentals of what the actual agreement’s gonna be like, later only would they discuss out the finer details.
Having the intention to kill isn’t a crime, unless i act towards that direction.
Haha sore loser
Dear Naza or Berjaya or Bermaz or whatever, you all deserve the downfall
so you prefer spamco which over charge by 700million?
Semua salah Mahaiddin
Semua punca Nika Gee Siew Yee
Tapi semua salah untuk TSMY
Kan
must have requested him to do it
TSMY and PN loves corruption by stealing more money from our rakyat but never do more contribution based on projects in Malaysia. Shame on TSMY and his PN.
Big buaya no cake to eat is very angry now! all his business not performing as well……look at their share price now!!!! VT is conman!
It is near PRN…we cant simply read n agree whatever statement relate to govt..now or previous…learn to be critical..how inthe world the bidder knows other bidder bid in tender process??
When the bidding committee has their own crony preference and a ‘leak’ happen just before the final process.
“Letters of intent are not legally binding, and don’t extend full legal protection to contractual parties”
No legal contract, then want to sue?
“Your Honor, I want to sue because i dont get the contract, which caused me to cancel booking of my new Bugati and RR”
Naza? I’d believe Spanco more.
what so surprising? Naza is never good at maintenance.
Cheaper also I wont go Naza to service my car.
Plus this Naza-Berjaya consortium is new and no track record. The marriage is unproven so to speak.
naza on name only, they may have some shares holding but operations control fully by bermaz
By the way, Naza is the major shareholder and controlling partner in this consortium, why then Berjaya is the spokeperson? Raising Naza stake to wayang somemore.
Moomoo is too smart for this.
Father in law and son in law company.
So? There could be a requirement for a Bumiputra controlled requirement for the bidder. Alibaba arrangement doesn’t work.
I have bought a recond car from NAZA before. Saw the car, condition was decent, salesman promised to do everything tip top before delivery. When came to collect car, so many things broken, nothing done and I said this was not the condition we agreed upon when I placed deposit. I requested a refund of the deposit but they refused. They said ‘ you tak puas hati boleh jumpa di makhamah”. Very bad people. When you buying they very nice, after deal close you are not guaranteed anything. Hope this experience will prevent others from losing a lot of money like me.
this is why investors leave Malaysia.
Grab, airasia… they know how bad doing business in Malaysia is, so they moved their operations elsewhere. Clever!
Rakyat wanted change, so this is the change we deserve.
At least unity government brings more business back, not PN days
What business?
RM700,000,000 cheaper yet cannot get the tender and rewarded to the Spank-crony. No wonder the Previous administratioN are so fond of direct negotiation tender at inflated price so now one wonder how much of those inflated price goes into other bank account as found in projects by MACC?
“Maybe the new government thought that Berjaya and Naza are not good enough in the car maintenance business or the car business,”
He knew the answer hahahahaaa
didn’t get means didn’t get la… not happy go complaint to the 98 year old racist best friend… see he got power or not to help after losing his deposit.
berjaya naza, , the knew they are not goood enough in the car maintenance busines n car business,, ,hahahhaha
Coz uncle Vince not abahcow’s crony
VT is a lalang
wayang
“We won the contract as the lowest bidder and got the LoI…” by that alone, VT should have know he be punked!
Tan Sri VT just want to distance himself from TSMY la. Remember those gambling company fund flow to PN? Coincidence Berjaya Sports Toto owned by whom? PR stunt well coordinate.
Idiots
Ini Vincent tan sudah tua, sudah banyak kaya, lagi mau government project, ini tarak guna punya orang.
A Gentlemen established the Gaming business approved by Former Ruling Party, Barisan Nasional (MCA) and that business is targeting almost 100% of Malaysian hard-earned money.
That Gaming Business has initiated full spectrum tactics to entice half of Malaysian to get addict to lottery gaming. Because of Business without Quit Gaming Foundation support, Many Malaysians experiencing bankruptcy, worse marital issues of divorce, broken relationship and widowed, some kids struggle to survive in broken family, conflict of community and non-stop chaos.
In the past, Malaysia Play Responsibility and Quit Gaming Foundation volunteer work hard to help community and gambler to quit gambling but was banned under former BN Ruling party member. Foundation volunteer member been torture and received prohibition warming to provide support “Quit Gambling Guidelines” to gambler seeking for help and some of volunteer been punished to death during former BN Ruling Party.
In the meantime, this gentleman used Taiwan Tsu Chi Buddhist Charity Foundation to polish his image and cleanse his sins without open public apologise. Not good enough!
Only Islamic Socialism Government has capacity to get rid of Loan Shark and taking care and help addicted Gambler to quit gambling.
Human Development Index Watchlist.