Judicial Review Application Reinstated Against Government Over Vehicle Fleet Concession

PETALING JAYA: The High Court in Kuala Lumpur has reinstated a judicial review application filed by Cekap Urus Sdn Bhd against the government, the finance ministry and Spanco Sdn Bhd over a decision to terminate the letter of intent for a multi-million ringgit vehicle fleet concession.

Background

Cekap Urus, a joint-venture between tycoon Vincent Tan’s Berjaya Corp Bhd, Naza Corp Holdings Sdn Bhd and Tunku Aminah Sultan Ibrahim Ismail, was given a letter of intent by the ministry of finance for the government fleet car contract in early 2019. However, the deal was terminated after Muhyiddin Yassin became prime minister.

Judicial Review Application

The High Court has reinstated Cekap Urus’ judicial review application against the government, the finance ministry and Spanco Sdn Bhd. This follows Cekap Urus’ decision to continue its legal challenge and withdraw the notice of discontinuance that it had filed last August.

Court Proceedings

High Court judge Ahmad Kamal Shaid fixed March 12 next year to hear the merits of the judicial review. He also ordered Cekap Urus to pay costs of RM1,000 to the government as well as Spanco Sdn Bhd.

Lawyers and Counsel

Lawyer Chuar Kia Lin represented Cekap Urus while Razlan Hadri Zulkifli, Navpreet Singh and Edmund Choi acted for Spanco. Federal counsel Sallehuddin Ali appeared for the government.

Previous Developments

In August, Cekap Urus filed a notice of discontinuance to withdraw the action, but Spanco had disagreed with the terms of the withdrawal. This led to the reinstatement of the judicial review application.

Background to the Tender

In 2018, the government had called on companies to bid for a contract to supply, maintain and manage its fleet of official vehicles – numbering about 12,500 – for the next 15 years. Several companies, including Sime Darby Bhd, DRB-Hicom Bhd, Samling Group, Comos, Go Auto, and Spanco, submitted their bids. Berjaya-Naza’s bid was RM700 million cheaper than Spanco’s offer.

Conclusion

The reinstatement of the judicial review application signals that the dispute over the vehicle fleet concession may continue. Cekap Urus is determined to challenge the government’s decision to terminate the letter of intent, while Spanco has agreed to contest the matter further.

Frequently Asked Questions

Q: What is the nature of the dispute?
A: Cekap Urus is challenging the government’s decision to terminate the letter of intent for the vehicle fleet concession.

Q: Who is Cekap Urus?
A: Cekap Urus is a joint-venture between tycoon Vincent Tan’s Berjaya Corp Bhd, Naza Corp Holdings Sdn Bhd, and Tunku Aminah Sultan Ibrahim Ismail.

Q: What is the scope of the contract?
A: The contract involves supplying, maintaining, and managing the government’s fleet of official vehicles for the next 15 years.