The Ministry of Finance (MOF) has revealed that discrepancies in the shareholder structure of a Berjaya Group-Naza Group joint venture were among the reasons the consortium lost a government fleet management concession awarded through a 2019 letter of intent (LOI).
Treasury deputy secretary-general (investment) Datuk Dr Shahrazat Haji Ahmad said the shareholders declared in the tender documents for the consortium’s special purpose vehicle (SPV), Cekap Urus Sdn Bhd, did not match the records filed with the Companies Commission of Malaysia (SSM).
According to the tender documents, the SPV was to be owned by Berjaya Corporation Bhd and Naza Corporation. However, SSM records showed the registered shareholders were Berjaya Corporation Automotive Sdn Bhd and Berjaya Group Bhd.
“They are different entities altogether with different financial performances,” Shahrazat said during a Public Accounts Committee (PAC) proceeding on Nov 3, 2025. The committee’s full report was released on Thursday.
She explained that the tender evaluation included an assessment of the financial strength of the SPV’s shareholders. Had the actual shareholders registered with SSM been assessed instead, Cekap Urus would not have met the financial requirements due to negative cash flow.
Shahrazat added that the Attorney General’s Chambers viewed the shareholder discrepancy as a significant issue that affected the integrity of the original tender evaluation.
Despite this, the Public-Private Partnership Unit (UKAS) allowed the consortium to revise its shareholder structure to address the issue, which it later did.
Cekap Urus received the LOI for the government fleet management concession in 2019. However, the LOI was revoked in 2020 following the change in federal administration after Tan Sri Muhyiddin Yassin became prime minister, succeeding Tun Dr Mahathir Mohamad.
The concession was subsequently awarded to Spanco Sdn Bhd, a company linked to businessman Tan Sri Robert Tan Hua Choon.
Following the cancellation, Cekap Urus filed a judicial review against the government, the MOF and Spanco, challenging the decision. Berjaya Group founder Tan Sri Vincent Tan Chee Yioun later claimed the government selected a proposal that would cost RM700 million more than the consortium’s bid.
The case remains before the courts. Cekap Urus is currently owned 51% by Berjaya Corp, 29% by Naza and 20% by Tunku Tun Aminah Sultan Ibrahim Ismail.
Negotiations Failed on Key Commercial Terms
Shahrazat also disclosed that the MOF spent nearly two years negotiating with the consortium after issuing the LOI but was unable to reach an agreement on several key commercial issues.
Among the unresolved matters were vehicle maintenance costs and purchase prices, as the consortium did not provide sufficient supporting documents or adequately respond to the government’s requests during negotiations.
She also said the ministry could not verify the consortium’s claim that its proposal would save the government RM700 million because the lower pricing was not supported with adequate evidence.
“When we examined the price difference, it was based on the difference between the proposed vehicle values and the actual market value. However, we were unable to obtain supporting documents to confirm whether those lower prices had actually been agreed upon,” she said.
She added that several cost items classified as “other costs” were quoted at reduced amounts without detailed breakdowns, preventing the government from validating the claimed savings.
Shahrazat stressed that the LOI did not constitute a final contract award but merely initiated negotiations between the government and the consortium. She noted that the LOI also gave the government the right to terminate it at any time without providing a reason.
Addressing claims that the concession was later awarded to Spanco through direct negotiations, Shahrazat said the company was approached because it had ranked second in the original tender exercise.
“We negotiate with the second-ranked bidder. If those negotiations fail, only then do we reopen the request for proposal,” she said.
