MAHB to pay additional RM8.7mil to Penang airport contractor

MAHB to pay additional RM8.7mil to Penang airport contractor

The Court of Appeal has instructed the company to pay the sum to Syarikat Pembinaan Anggerik Sdn Bhd in a dispute over upgrading works.

Malaysia Airports Holdings Bhd has been instructed to pay an additional RM8.71 million to Syarikat Pembinaan Anggerik Sdn Bhd over a dispute regarding Penang International Airport’s upgrading works. (Bernama pic)
PETALING JAYA:
Malaysia Airports Holdings Bhd (MAHB) has been ordered by the Court of Appeal to pay an additional RM8.71 million to a contractor over a dispute regarding Penang International Airport’s upgrading works.

In a filing with Bursa Malaysia yesterday, the group said this brought the total sum awarded to Syarikat Pembinaan Anggerik Sdn Bhd (SPASB) to RM18.64 million.

In April 2017, SPASB initiated a civil suit against MAHB for the eventual total sum of around RM66.8 million for alleged losses and damages pertaining to works carried out by the company.

MAHB had engaged SPASB to upgrade the airport in Bayan Lepas in 2010.

This involved renovating the main terminal building as well as upgrading the drainage system near the airport runways.

However, completion of the works was delayed because of flooding and issues such as the collapse of parts of the ceiling.

The upgrading was initially scheduled for completion in mid-2012.

In its suit, SPASB said it was entitled to claim for losses and damages because of unexpected acceleration of the relevant portion of the work.

On Sept 15, 2021, the Shah Alam High Court awarded SPASB the sum of RM9,929,436.23 plus interest.

“The company wishes to announce that on April 6, 2023, the Court of Appeal awarded SPASB a further sum of RM8,708,532.67,” said MAHB.

The group announced that it is taking legal advice on this matter.

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