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Lawyers for businessman linked to minister in LCS project say he has had nothing to do with MySejahtera since July 2021

Lawyers for businessman linked to minister in LCS project say he has had nothing to do with MySejahtera since July 2021

KUALA LUMPUR (Nov 7): Lawyers representing businessman Jaya Sudhir Jayaram on Monday (Nov 7) said their client has had nothing to do with the MySejahtera project since July 2021.

According to a statement issued by his lawyers in reference to The Edge report titled “Rafizi claims special function minister linked to businessman behind firm receiving payments for LCS project” dated Nov 3, in 2021, Jaya Sudhir was appointed as chief business development officer of MySJ Sdn Bhd for a brief period.

“His appointment was terminated in July 2021. Since the termination of his position in July 2021, Jaya Sudhir has not been engaged or employed by MySJ Sdn Bhd or in any way connected with the operations or management of MySJ Sdn Bhd.

“Jaya Sudhir has never been a shareholder of MySJ Sdn Bhd,” the statement said.

Also, all matters between P2 Asset Management Sdn Bhd and the other shareholders of MySJ have been resolved with the pending legal proceedings withdrawn.

P2 Asset Management will also no longer be a shareholder of MySJ.

“The Health Ministry with effect from November 2021 has taken over the management of MySejahtera app from the National Security Council,” the statement added.

The statement was issued in response to PKR deputy president Rafizi Ramli’s claim last Thursday (Nov 3) that Jaya Sudhir was involved in the MySejahtera dispute through P2 Asset Management, a shareholder of MySJ, and also the littoral combat ship (LCS) project.

The company had sued the other shareholders of MySJ over a dispute involving the shareholder agreement between P2 Asset Management and Revolusi Asia Sdn Bhd, while Jaya Sudhir had purportedly been appointed as chief business development officer of MySejahtera, according to Rafizi.

Parties disagree on whether suit was withdrawn or not

It is understood that parties involved in the P2 Asset Management suit against Entomo Malaysia Sdn Bhd, Revolusi Asia and with MySJ last Friday (Nov 4) reached a settlement.

Counsel for Entomo and Revolusi Asia, Ashok Kandiah, when contacted by theedgemarkets.com confirmed this, but opposing side from P2 Asset Management said while the matter was settled, the suit is not withdrawn yet, as there are some terms to be fulfilled.

P2 Asset Management filed the suit after it paid RM12.2 million to acquire a 10% stake in MySJ from Revolusi Asia sometime in July 2021.

This came after Entomo submitted a proposal to the Malaysian government in 2020 for a mobile application-based solution using a software known as KPISoft to develop what is now known as the MySejahtera app.

The application allows users to perform health self-assessment, monitor health conditions, and track the movements of the population, thereby enhancing the efficiency of the contact-tracing exercise. In addition, it also became the official channel to support the National Covid-19 Immunisation Programme.

According to P2 Asset Management’s statement of claim, Entomo did not want to offer the software on a corporate social responsibility basis and was said to be determined to make business profit from it.

On Sept 17, 2020, Revolusi Asia was incorporated and three days later, it entered into an agreement with Entomo in which Revolusi Asia would hold all the shares of MySJ, making it its nominee.

On Sept 23, 2020, MySJ was incorporated and at that time, all shares of MySJ were held by Revolusi Asia.

On Oct 6, 2020, MySJ entered into an agreement with Entomo to transfer the intellectual property of the MySejahtera app.

Entomo would grant the licence for the software and MySJ would have to pay RM338.6 million, being the aggregate fees for the transfer of intellectual property and licensing fees, for the software.

Between November and December 2020, Entomo was said to have proposed a commercial model to the government, but the government did not make any affirmative decision and hence, there was fear MySJ would default on its obligation under the licensing fees.

P2 Asset Management entered the fray, by inking a share sale agreement with Revolusi Asia on Dec 31, 2020. That agreement would see Revolusi Asia transfer its 10% stake in MySJ to P2 Asset Management, with both parties agreeing that P2 Asset Management would endeavour to obtain a letter of award (LOA) from the Malaysian government.

In April 2021, the Cabinet approved the continued use of the app by way of a service contract and delayed the full commercialisation of the app. In May 2021, this was extended to Sept 2, 2021.

Following that, P2 Asset Management felt that a supplemental agreement was necessary to amend the arrangement as to the payment of the third tranche as it could not proceed without the LOA. However, P2 Asset Management claimed that Entomo needed money and it paid RM12.2 million as of July 19, 2021.

Sometime later that month, Revolusi Asia was said to have approached another company, Hasrat Budi Sdn Bhd, to also acquire MySJ shares. On Sept 7, 2021, Revolusi Asia terminated its share agreement with P2 Asset Management.

Hence, P2 Asset Management claimed a declaration that Entomo, Revolusi Asia and MySJ had committed a tort of conspiracy against it and that the shareholder agreement it signed was valid, binding and in full force.

Last July, Entomo and one Raveenderen Ramamoothie were to purchase all Hasrat Budi’s shares in MySJ — the operator of the MySejahtera app — for RM24 million plus a premium.

This followed a consent judgement recorded in the High Court on July 28, as stipulated by Eco World Development Group Bhd, the parent company to Hasrat Budi.

Hasrat Budi sued Entomo and Raveenderen on April 29 for failure to buy all of its shares in MySJ by April 28 following a put option exercised by the company.

Read also:
Rafizi claims special functions minister linked to businessman behind firm receiving payments for LCS project
Entomo, Raveenderen to buy EcoWorld unit’s shares in MySejahtera operator
MySejahtera: High Court fixes April 15 for decision on P2 Asset Management’s bid to amend statement of claim



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