Govt must explain Datasonic acquisition U-turn, says PKR MP

 Lee Chean Chung says the positions taken by the finance ministry and National Security Council appear to be inconsistent.

Petaling Jaya MP Lee Chean Chung said any potential acquisition of a listed company cannot be treated casually, with a government official simply asking for a price and leaving it at that.

PETALING JAYA:

A PKR MP has urged the government to explain the decision not to acquire Datasonic Technologies Sdn Bhd, the supplier of the country’s passports and national identity cards, after the firm was asked to submit an indicative price for a possible acquisition.

Lee Chean Chung, who is the Petaling Jaya MP, said the government’s positions regarding the matter, communicated by the finance ministry and the National Security Council (MKN), appeared to be inconsistent.

He urged the finance ministry to clarify whether it had, during a July 24 meeting, asked Datasonic or its parent company NexG Bhd to provide an indicative offer for a potential acquisition.

“If so, the ministry should explain which department or official made the request, and under what authority the meeting and request were made,” he said in a Facebook post.

“Second, if MKN had already stated that the government has no intention of acquiring the company, why was an indicative offer reportedly sought by the ministry in the first place?”

On Aug 21, NexG said the government was considering acquiring Datasonic, with the firm preliminarily valued at RM7.5 billion. It said the ministry had asked the company in July to provide an indicative price for a possible acquisition.

NexG said Datasonic was the core business of the group and warned any disposal of the unit may have a material impact on its business operations, financial performance, and listing status.

However, the following day, MKN said the government would not acquire Datasonic and would continue to explore proactive and effective strategies to safeguard identity security while ensuring value for money.

Lee said that a potential acquisition involving a listed company is not something that can be treated casually, with a government official simply asking for a price and leaving it at that.

“If a government agency formally requested an indicative offer, there must be a clear explanation of the basis, authority, and subsequent decision arising from that request.

“I therefore urge the ministry to clarify the facts and explain the government’s decision-making process so that different government agencies do not continue sending conflicting signals that can create confusion among the public and the market.” - FMT