IRIS Corporation which had its RM1.2 billion NIISe contract terminated with immediate effect by the Home Ministry warned that the decision could impact its 2023 financials. The stock price of the company dropped 11% as of 9:30 this morning.
In a Bursa filing, Iris Corporation Berhad through its subsidiary Iris Information Technology Sdn Bhd System which won the award has informed that it has on 14 August 2023 received a letter from KDN (Home Ministry) dated 10 August 2023 wherein KDN served IITS a notice of termination to terminate the NIISe Contract with immediate effect.
Iris said IITS is seeking legal advice from its solicitors in relation to the notice of termination and said it will take necessary actions to protect its interests and exercise its legal rights in relation to the NIISe Contract.
The termination of the NIISe Contract is expected to have an impact on the Group’s financial performance for the financial year ending 31st March 2024. However, the extent of the impact cannot be reliably ascertained at this juncture.
The group had earlier said it had won the contract on a fair basis.
