IRIS Corp to dispose of 80% equity in unit involved in immigration system
New twist to the Muhyiddin son-in-law corruption allegation
(FMT) – IRIS Corporation Bhd has moved to dispose of 80% of its equity interest in its subsidiary that developed the RM1.123 billion National Integrated Immigration System (NIISe), a project that is being probed for possible abuse of power.
IRIS has moved to dispose of a majority of its equity interest in Iris Information Technology Systems Sdn Bhd (IITS) for RM70 million in cash, The Edge reported.
IRIS said the stake is being sold to Tass Tech Technologies Sdn Bhd, an IT company. The agreement was signed on Friday.
“IRIS reasoned that the disposal would enable the group to unlock its value of investment in IITS and would contribute positively to its cash flow,” the report read, adding that proceeds from the disposal were to be used for working capital and any future business expansion.
News of IRIS’ move to dispose of its equity in its wholly owned subsidiary comes a day after former prime minister Muhyiddin Yassin denied any involvement in the NIISe contract to the firm, for which there had been an open tender.
He also said that the awarding of the contract was done in accordance with the government’s standard procedures and was supervised by the finance ministry and other relevant ministries.
On Wednesday, FMT reported that the Malaysian Anti-Corruption Commission was investigating the award of the contract to Muhyiddin’s son-in-law, Adlan Berhan.
Adlan was named in media reports in 2020 as being linked and possibly a key player in the contract for the NIISe.
He was alleged to have links to one of the project’s front-runners, security solutions provider S5 Holdings Inc, according to a report in The Vibes.
However, S5 group managing director Syed Mohammad Hafiz Jamalullail was reported by The Edge as saying in 2021 that none of his political connections, including Adlan, was involved in S5.
The NIISe was reportedly mooted by Muhyiddin when he was the home minister in the Pakatan Harapan government, after the Sistem Kawalan Imigresen Nasional was cancelled by him because of high costs.