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KUALA LUMPUR: One contractor was unable to obtain an interim court order to restrict and prevent the Government from canceling or terminating its contract for the Klang Valley Double Tracking Phase 2 (KVDT2) project, pending resolution of its main claim.
This was after High Court (Construction Division) Judge Datuk Aliza Sulaiman dismissed the application filed by Dhaya Maju LTAT Sdn Bhd, pending resolution of her lawsuit against the Government and Transport Minister Datuk Seri Dr. Wee Ka Siong, as the first and second defendants, respectively.
In dismissing the request, Judge Aliza said that the court is bound by the previous Federal Court decision that ruled that a court order cannot be issued against the government and public officials (in the performance of their public functions).
“I am inclined to follow the decision (of the Federal Court) by not allowing the provisional injunction against the government and the public official and therefore this application is dismissed at a cost of 10,000 ringgit,” he said.
Lawyer Tan Sri Cecil Abraham representing Dhaya Maju LTAT later informed the court that the company will file an appeal against the decision with the Court of Appeal.
The project was criticized after Finance Minister Tengku Datuk Zafrul Abdul Aziz published the list of 101 projects awarded through direct negotiations worth RM6.61 billion during the Pakatan Harapan (PH) administration.
This includes the KVDT2 project awarded to Dhaya Maju LTAT worth RM4 475 billion.
On August 28, Wee in a statement said that the ministry will reopen the tender for the KVDT2 project after taking into consideration the results of an extensive study and investigation that found that the cost of such a project under Dhaya Maju-LTAT was overvalued during the PH. administration.
Earlier, Abraham claimed that Wee’s press release gave the impression that the contract would be terminated.
“We are not restricting the government and the minister in the performance of their public functions, this case today is purely contractual in nature, as we intended to maintain the status quo,” he said.
Senior Federal Counsel (SFC) Habibah Haron responded that the project involved billions of ringgit and could not be decided via a press release.
SFC Asliza Ali added that any cancellation of a project must be followed by a formal notification of termination.
“In our case, there is no formal notice of termination, for them (the plaintiff) to proceed with this civil action is premature,” he said, adding that the government must comply with its public duty regarding the KVDT2 project since (the project ) has the element of public interest.
Then, the court set October 19 to handle the case.
According to the lawsuit filed on September 7, Dhaya Maju LTAT, among others, seeks a statement that there is a valid and binding contract between the company and the government by means of an acceptance letter dated August 19, 2019.
The plaintiff also requests a statement that any termination or cancellation of the contract by the defendants will be invalid, illegal and unlawful, in addition to a court order against both defendants to restrict and prevent them from acting or taking action in relation to any cancellation or termination. of the contract.
Dhaya Maju LTAT, among others, asks the Government for the outstanding amount of RM 137,054,534.21 and an interest of five percent per year on the outstanding amount up to the date of the ruling and the final settlement.
The company also seeks to have damages assessed for Wee’s liability, interest, costs, and other reparations that the court deems timely and appropriate to award.
In its claim, the plaintiff, an 80:20 joint venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and Lembaga Tabung Angkatan Tentera (LTAT) established on June 5, 2017, under the Companies Act 2016, received the KVDT2 Project through an acceptance letter dated April 4, 2018, with the original contract valued at the sum of RM5.58 billion.
The company said it had immediately started work on the project upon issuance of the original contract, but the change of government after the 14th General Election resulted in the original contract being unilaterally terminated on October 19, 2018, via notice. termination issued by the Secretary. -General of the Ministry of Transport supposedly for reasons of public interest or national security or national interest.
The plaintiff said that following the termination of the original contract, several meetings or discussions were held between the parties that culminated in the execution of the settlement agreement on August 19, 2019.
The company said that according to the terms of the settlement agreement, it was re-awarded the project with the revised contract amount of RM4.475 billion, and that it had duly fulfilled its obligations, allowing the project to achieve good performance. an advance of 24%, possible thanks to the dedication of 1,512 employees and 261 supply and service companies.
To date, the plaintiff said he has completed works that have been certified for payments in excess of RM300,763,033.12 as of the period ending June 30, 2020.
The company said that, in March 2020, there was again a shift in Malaysia’s political landscape that saw a new coalition government known as Perikatan Nasional come to power and that, once again, resulted in the plaintiff landing in means of controversy, confusion and uncertainty regarding the project.
The plaintiff said that, for reasons unknown to him, both defendants refused or failed to perform the relevant contract documents even though there is an express requirement that they do so within a period of four months from the date of issue. of the Letter of Acceptance. in accordance with the corresponding Treasury Circular, which to date, said the plaintiff, the corresponding documents have not yet been signed.
He said that despite the existing contract between the plaintiff and the government, Wee had announced on August 28, through a press release, among other things, the decision to cancel or terminate the contract with the plaintiff and to reopen the process. bidding for the project through an open bidding system. – Named
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