Vincent Tan Suing Govt Over Fleet Maintenance Contract

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Berjaya Group founder Vincent Tan said an offer to manage the government fleet of vehicles was terminated after a change of government in 2020.PETALING JAYA: Billionaire tycoon Vincent Tan, founder of Berjaya Group, said today a suit has been filed against the government over a RM300 million a year fleet maintenance concession which he said was withdrawn shortly after the change of government in 2020.
Speaking at a press conference today, Tan said a Berjaya-Naza consortium had been selected by the government in 2018 to handle the fleet concession, New Straits Times reported.
After a change of government in 2020, the offer was terminated before the actual award was to be announced, Tan alleged.
“We won the contract as the lowest bidder and received the letter of intent but then the government changed and Muhyiddin Yassin became the prime minister. Three months after that, we got a notice that the letter of intent was terminated,” Tan was quoted as saying.
Muhyiddin became prime minister in March 2020, a week after the Pakatan Harapan government led by Dr Mahathir Mohamad collapsed.
Tan said the new government “gave the tender to Spanco Sdn Bhd”, the previous concessionaire. He said a suit had been filed against the finance ministry.
“We are waiting to go to court this year. You will hear more of this down the road,” he told reporters at a press conference on the sale of Berjaya group’s waste management business to Naza Group for RM700 million.
No details of the suit or the statement of claim were immediately available. FMT is seeking comment from the finance ministry.
Tan said Berjaya Group and Naza Corporation Holdings formed a 49:51 consortium to bid for the contract after the government invited proposals from various companies.
The contract is believed to be worth an estimated RM300 million a year, from the fifth year of the contract onwards, the NST report said.
Among the other companies which bid for the contract were Sime Darby Bhd, DRB-Hicom Bhd, Samling Group, as well as Spanco, which had held the concession since 1994, the report said. - FMT

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