Double tracking contractor files for summary judgment to recover RM137 mil from govt

Double tracking contractor files for summary judgment to recover RM137 mil from govt

Dhaya Maju-LTAT Sdn Bhd claims the government failed to pay it for the Klang Valley Double Tracking work done between February and May this year.

The KVDT2 involves two KTM railway tracks – one from Salak South and the other from a point between Kuala Lumpur Sentral and Angkasapuri.
PETALING JAYA:
The contractor for the Klang Valley Double Tracking Phase 2 rehabilitation project (KVDT2) is seeking a summary judgment to recover more than RM130 million in unpaid fees from the government.

The sum of RM137,054,534.21 is payment for KVDT2 work that Dhaya Maju-LTAT Sdn Bhd carried out between February to May, it said in its application.

It noted that the government had admitted in its defence statement filed in the breach of contract lawsuit that it had yet to pay the company for four months’ work.

In its statement of claim, Dhaya Maju-LTAT said it carried out work for the government on eight occasions between October 2019 and August 2020.

“The government (during Pakatan Harapan administration) had settled the sum for work between October and November 2019.

“However the government failed to make payments between February and May this year,” the company said.

The Kuala Lumpur High Court set Nov 19 for mention of the summary judgment bid.

Dhaya-Maju LTAT is suing the government and Transport Minister Wee Ka Siong for alleged breach of contract, claiming that there was no basis under the law for Wee to “terminate the contract” and reopen the tender.

It is seeking a court declaration that Wee be held liable for tort of misfeasance in public office because of his action, as well as a declaration that the contract termination is unlawful.

On Aug 28, Wee announced that the Cabinet had agreed to convert the KVDT2 rehabilitation project to an open tender and to cancel the directly negotiated contract after it found that the project cost a lot less than the amount previously cited.

In the government’s defence, it said the decision to reopen the tender for the KVDT2 was done to “optimise usage of public funds” in large-scale infrastructure projects.

Previously the court was told that the official termination letter was sent to Dhaya Maju-LTAT on Sept 25 through registered post. Dhaya Maju received the official termination letter on Sept 29.

Dhaya Maju-LTAT also filed another lawsuit last month, claiming that the termination letter was not duly sent to it, as required under the contract’s terms.

The company also said that the government had no basis to terminate the contract on grounds of “public interest”.

“Any termination of the contract would also mean that public safety may be compromised, as the frequent derailments in the Klang Valley area will continue”.

It also claimed that a consultant company, Opus Consultants, had prepared the report, “premised on completely erroneous assumptions”, leading to the government and Wee to terminate the KVDT2 contract.

In Wee’s press statement, he said findings from Opus showed that the project’s actual cost was RM3.398 billion. This was disputed by former transport minister Loke Siew Fook, who said his then ministry did not appoint Opus but that Opus had voluntarily presented a report.

Dhaya Maju-LTAT also alleged that Keretapi Tanah Melayu Bhd’s (KTMB) action in instructing it to give up possession of the site was unlawful.

“KTMB had acted on the purported termination made by the government, and we say the termination notice was unlawful,” it added.

KVDT2 was one of the 101 projects costing RM6.61 billion claimed by the Perikatan Nasional government in Parliament recently as awarded through direct negotiation during the Pakatan Harapan administration.

The project spans 110km, involving two KTM railway tracks – one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.

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