Court rejects bid to stop govt from cancelling KVDT2 project

High Court judge Datuk Aliza Sulaiman dismissed the application pending disposal of the contractor's suit against the government and Transport Minister Datuk Seri Dr Wee Ka SiongIn dismissing the application, Justice Aliza said the court is bound by the Federal Court’s previous decision which ruled that no injunction can be made against the government and public officials .

The project came under fire after Finance Minister Tengku Datuk Zafrul Abdul Aziz released the list of 101 projects awarded via direct negotiations worth RM6.61bil during the Pakatan Harapan administration.

Senior federal counsel Habibah Haron countered that the project involved billions of ringgit and it could not be decided through a press statement. The plaintiff is also seeking a declaration that any termination or cancellation of the contract by the defendants will be invalid, unlawful and wrongful, besides, an injunction against both defendants to restrain and prevent them from acting or taking any steps in connection with any cancellation or termination of the contract.

In its statement of claim, the plaintiff, an 80:20 joint-venture company between Dhaya Maju Infrastructure Sdn Bhd and Lembaga Tabung Angkatan Tentera incorporated on June 5, 2017, under the Companies Act 2016, was awarded the KVDT2 project by way of a Letter of Acceptance dated April 4, 2018, with the original contract valued at the sum of RM5.58bil.

The company said, in line with the terms of the settlement agreement, it was re-awarded with the project with the revised contract sum of RM4.475bil, and that it had duly carried out its obligations which enabled the project to achieve a healthy progress of 24 per cent, made possible with a dedicated 1,512 employees and 261 numbers of supply and services companies.

Source: Law Daily Report (lawdailyreport.net)

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