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PETALING JAYA: Dhaya Maju-LTAT Sdn Bhd, the contractor for the Klang Valley Double Tracking Phase 2 (KVDT2) rehabilitation project, intends to continue to perform its obligations until it is formally informed that its contract has been terminated.
The company said this was to ensure the project was delivered on time and without delay.
Its CEO, Datuk Mohamed Razeek Hussain, added that the company will also continue to collaborate with the government and relevant stakeholders to ensure that the KVDT2 project and the interests of the public are not compromised or jeopardized.
“We cannot understand why there is a sudden rush to terminate the contract.
“The government must consider the direct impact on the economy during this coronavirus (Covid-19) pandemic, as well as analyze the delivery time statistics and the cost of completion.
“The sites will be inactive. The live tracks, adjacent to the sections where we have removed the rails and ballast, run the risk of deterioration and movement that will be a danger to trains and passengers, ”he said in a statement on Tuesday (September 1).
On Friday (August 28), Transport Minister Datuk Seri Dr. Wee Ka Siong said that the cabinet had agreed to turn the KVDT2 rehabilitation project into an open tender, canceling the directly negotiated contract.
KVDT2 was one of 101 projects costing RM6.61bil recently revealed in Parliament as contracts awarded through direct negotiation during the Pakatan Harapan government surveillance.
Dr Wee said that the call to review the project awarded to Dhaya Maju-LTAT was aimed at optimizing the use of public funds.
The next day, it also revealed that former Transport Minister Anthony Loke had informed Pakatan Harapan’s Cabinet on September 19, 2018 that the cost of the project could be reduced by RM500 thousand to RM3 bil if it was re-bid.
But 10 months later, the project was offered through direct negotiations at a price of RM4,475bil.
In response to this, Razeek said that Dhaya Maju-LTAT had initially received the original award letter dated April 4, 2018, for the KVDT2 project during the Barisan Nasional government term, after which it had started work and when the Pakatan government took over. the original KVDT2 award ended on October 19, 2018.
“Having accepted that there was no basis to rescind the initial award letter, on July 5, 2019 the Pakatan government agreed to reappoint Dhaya Maju-LTAT to implement the project and the parties entered into a resolution agreement under which the government agreed to issue a new award letter.
“In return, Dhaya Maju-LTAT renounced all its claims against the Government for wrongful termination,” he said, adding that after this, the company was designated to continue the project according to the award letter of August 19, 2019, in a lower contract sum.
Dhaya Maju-LTAT formally received possession of the site on September 3, 2019.
Razeek also said that the KVDT2 project has achieved 24% progress, made possible with its 1,512 dedicated employees under Dhaya Maju-LTAT and 261 supply and service companies.
“We have created job opportunities for more than 7,000 employees in the service, supply and maintenance sectors.
“The company has made a total investment of RM350,000 to acquire specialized railway machinery and equipment to achieve the timely completion of the project,” he said, adding that this adds up to around RM120,000 in civil engineering machinery that the company owns.
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