Muhyiddin reiterates that the decision made by the Cabinet last year to terminate SKIN project is final

By ALIFAH ZAINUDDIN / Pic By MUHD AMIN NAHARUL

The government is expected to issue a request for proposal (RFP) for the Integrated Immigration System this week, following the termination of the National Immigration Control System (SKIN) project last December.

Home Minister Tan Sri Muhyiddin Yassin (picture) said the ministry will be calling for bids on the new system soon, once paperwork matters are sorted.

“The document to call for an RFP on the integrated immigration system is almost ready. I think it’s possible that the RFP will come out by this week,” Muhyiddin told reporters in Putrajaya yesterday.

The Cabinet last year agreed to scrap the RM3.5 billion SKIN concession awarded to Prestariang Bhd in favour of a more cost-effective system. The government’s commitment to a more competitive, transparent and fair procurement through an open tender is expected to save nearly RM1 billion in costs.

In March, Bloomberg reported that Retirement Fund Inc (KWAP) is said to be seeking to revive the SKIN project by offering to lower the cost. It said KWAP had proposed to reduce the cost of the project by 17% to RM2.89 billion and raise its stake in Prestariang if the project is revived.

Muhyiddin said he is unaware of any proposal to reinstate the SKIN project, reiterating that the decision made by the Cabinet last year is final.

“As far as I am concerned, the Cabinet has made a decision to cancel it. I have not received any letters from any parties saying they want to revive it or anything of that sort.

“The decision was made on a strong reason that it was excessive. The quantum charged was over what we could imagine. I don’t think it is even necessary to even relook into it again,” he said.

Prestariang, through its wholly-owned unit Prestariang Skin Sdn Bhd (PSKIN), secured the multibillion-ringgit contract in 2017 from the previous Barisan Nasional government. The SKIN project involves a 15-year concession to design and maintain a new immigration and border control system.

PSKIN has since filed a legal claim of RM732.86 million against the government over the termination of the contract, after the two sides failed to reach an agreement on the compensation sum.

In a statement to Bursa Malaysia last month, Prestariang said PSKIN had never defaulted on the concession agreement (CA).

“Despite the agreement for a 15-year concession, the government unilaterally terminated the CA by way of expropriation, which took effect on Jan 22, 2019. PSKIN strongly believes that the CA was fair and reasonable,” it said.

PSKIN is 70% owned by Prestariang, with the remaining stake said to be held by Muhammad Nagib Gopal Abdullah, Faisalludin Mohamat Yusuff and PSKIN CEO Raja Azmi Adam Nadarajan.

Separately, Muhyiddin also announced the appointment of Datuk Seri Abdul Hamid Bador as inspector general of police, succeeding from Tan Sri Mohamad Fuzi Harun effective tomorrow.