The Construction Industry Development Board (CIDB), an agency under the works ministry, filed a suit against Jepak Holdings Sdn Bhd in the High Court here today, claiming that it has the right under the law to impose a 15% levy on any company that has projects worth over RM500,000.

CIDB said Jepak was awarded the project on Nov 11, 2016 by the government through direct negotiations.

“We had issued the company a notice under Section 34(2) of the CIDB Act on June 12, 2019 ordering it to pay a RM1.66 million levy.

“However, the defendant failed to pay or provide an explanation for the non-payment,” it said.

CIDB said a letter of demand was issued to Jepak Holdings on Aug 16 in the same year, demanding the RM1.66 million levy, but the company failed to respond.

The court has fixed Monday as the next mention date.

Jepak Holdings’ former managing director, Saidi Abang Samsudin, and Rayyan Radzwill, said to be his former business partner, were key prosecution witnesses in Rosmah Mansor’s corruption trial.

The wife of the former prime minister is alleged to have solicited RM187.5 million from Saidi to help Jepak Holdings secure the solar project.

She is also alleged to have received RM6.5 million from him between 2016 and 2017.