Govt open to ‘out-of-court’ settlement on KVDT2 termination

pic by BERNAMA

THE government is open to seek an amicable “out-of-court” solution for any issues it faced including the purported termination of the Klang Valley Double Tracking Phase 2 (KVDT2) rail project.

Minister in the Prime Minister’s Department (Parliament & Law) Datuk Takiyuddin Hassan (picture) said at the Cabinet meeting last Friday that the ministers have decided for the Ministry of Transport and the company involved in the matter to negotiate and reach a “win-win solution”.

“Not just for this civil case but any case the government is faced with, we are open to have an amicable out-of-court settlement.

“It is the same with this case. Last Friday the Cabinet agreed for the Transport Ministry to negotiate with the company and reach a win-win solution. I am confident the government is ready for negotiations,” he said in the Dewan Rakyat yesterday.

He was responding to a supplementary question from Anthony Loke (Pakatan Harapan [PH]-Seremban) who queried if the government was willing to renegotiate with the project’s contractor, Dhaya Maju-LTAT Sdn Bhd to avoid huge legal implications.

Loke also requested for the explanation that was provided by the Attorney General (AG) on the government’s decision to cancel the contract and the legal implications that could be faced.

Takiyuddin said the AG had advised the government to ensure the termination of the contract be based on laws or agreements by both parties.

The AG had also advised the parties to provide sufficient facts to enable the government to terminate the contract.

Takiyuddin said the government is facing three civil suits which are judicial review, damages claim over an alleged breach of contract and application injunction.

“The company has gotten an interim injunction towards the government. There are several other applications where the court is still deciding on the dates,” he said.

On Aug 28, Transport Minister Wee Ka Siong announced that the government will reopen the tender for the rail project as he claimed that the cost of RM4.48 billion decided under the previous PH government was too high.

The High Court in Kuala Lumpur was then informed by senior federal counsel Nik Mohd Noor Nik Kar that the government had issued the termination letter to the company on Sept 24.

Dhaya Maju-LTAT had filed a lawsuit in September to prevent the government from terminating its contract.

According to Malaysiakini, the company has also filed another lawsuit which seeks to invalidate the alleged termination of the contract which was done via a letter dated Sept 23.

Separately, a total of 781 construction sites were not allowed to operate for not complying to the Covid-19 standard operating procedures (SOPs).

Deputy Works Minister Datuk Eddie Syazlin Sith the ministry had inspected 7,704 construction sites nationwide. As of Oct 18, the report showed that 6,923 sites complied to the SOPs and were allowed to continue operations, while the remaining 781 were given stopwork orders.

For Sarawak, 739 sites are allowed to operate. Of the total, he said four sites in the state had violated the SOPs and were not allowed to operate.

“One of the reasons these sites failed to comply with the SOPs is because they do not understand the requirements of the SOPs, which has led to confusion.

“Therefore, the Construction Industry Development Board has taken the necessary approach to provide details regarding the SOPs so that the companies can understand them,” he said as a reply to Ahmad Johnie Zawawi (Gabungan Parti Sarawak-Igan) on the issue.


Read our earlier report here