Iris Says Home Ministry S Termination Of Niise Contract Is Invalid Unlawful

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In January 2021, the home ministry awarded Iris Information Technology Systems Sdn Bhd a contract valued at RM1.16 billion to develop the National Integrated Immigration System. (Iris Corp Web pic)PETALING JAYA: Iris Corporation Bhd (Iris Corp) has communicated with the home ministry (KDN), disputing the termination of its contract for the National Integrated Immigration System (NIISe), claiming it was “invalid and unlawful”.
In a filing with Bursa Malaysia today, the technology integration and innovator said its wholly owned subsidiary, Iris Information Technology Systems Sdn Bhd (IITS), sent the letter today after obtaining legal advice.
“IITS firmly disputes the termination as stated in the notice of termination and will take necessary actions to protect its interest and exercise its legal rights in relation to the NIISe contract,” it said.
The group had earlier announced that IITS was served with a termination notice dated Aug 10.
Interestingly, three months earlier the ministry had granted a 12-month extension to the NIISe contract, pushing the expiration date from Sept 1, 2025, to Aug 31, 2026.
In January 2021, a contract valued at RM1.16 billion was initially awarded to IITS, granting them a 54-month tenure from March 1, 2021, to August 31, 2025.
Cutting-edge digital solutions
The NIISe initiative is a programme launched by KDN to upgrade the IT infrastructure system of the immigration department, involving the integration of “cutting-edge digital solutions” to elevate service quality, concurrently fortifying border safety and security measures.
Home minister Saifuddin Nasution Ismail previously mentioned the potential replacement of the NIISe contractor if they could not successfully carry out the project.
Ads by KioskedBefore the contract extension, Saifuddin highlighted the project had not made sufficient headway as of March this year.
Iris is currently in the process of divesting 80% of its stake in IITS to Tass Tech Technologies Sdn Bhd for RM70 million.
For the financial year ended March 31, 2023 (FY2023) Iris recorded a net profit of RM21.9 million, surpassing its FY2022 figure of RM3.41 million by over sixfold.
Revenue surged 65.35% to RM348.87 million from RM210.99 million previously, primarily attributed to increased international card and e-passport deliveries.
Iris Corp’s share price was unchanged at 7.5 sen, valuing the company at RM229.42 million. - FMT

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