A JOINT venture (JV) between Berjaya Group and Naza Group has taken the Finance Ministry (MOF) to court for terminating a letter of intent (LOI) offered to the JV.

Berjaya Group’s founder and advisor Vincent Tan Chee Yioun said the contract to supply government vehicles was terminated three months after former prime minister Muhyiddin Yassin took over the prime-ministership from Dr Mahathir Mohamad. 

“They (government) terminated us and gave it to Spanco (Sdn Bhd). The government agreed to spend RM700 million more (compared to JV bid). The government thinks Berjaya and Naza are not good enough in the car business.

“We have filed a legal suit against the MOF and we are ready to go to court. You will hear more of this down the road,” Tan was quoted as saying in a press conference today at Edge Malaysia.

In the report, Tan said the tender by the JV had Naza with a 51% stake and Berjaya with 49%, that was the cheapest among all bidders.

He also noted that stakes in the JV have changed, with Berjaya now holding a 40% stake.

Spanco has been maintaining the government’s vehicle fleet since 1994.

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.

It was reported that Proposals were received from at least seven companies.

Aside from the Naza-Berjaya consortium, 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.

Previous reports said the new contract is expected to involve 12,500 vehicles over 15 years and worth RM300 million annually, after the fifth year. The cars would be used by ministers, senior government officials and departments, as well as the police. –  July 17, 2023.