KVDT2 project contractor sues govt, minister over contract termination

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KUALA LUMPUR: The contractor for the Klang Valley Double Tracking Phase 2 rehabilitation project (KVDT2) has filed a lawsuit against the government and Transport Minister Wee Ka Siong over their decision to terminate the contract to manage the double tracking line.

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Dhaya Maju-LTAT, in its lawsuit, claimed there was no basis under the law for Wee to terminate the contract and reopen the tender.

“The only natural logical inference is that the second defendant (Wee) was acting in bad faith, or with an improper motive,” the company said.

Dhaya Maju-LTAT contended that Wee should be held liable for tort of misfeasance in public office due to his action.

The High Court here will hear the company’s bid for an injunction today, pending the disposal of its lawsuit.

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Previously, the company’s CEO, Mohamed Razeek Hussain, had said they were perplexed by the termination of the contract, as there was “no legal or factual justification” for it.

He said Dhaya Maju-LTAT was the duly appointed contractor for the project and had received the original letter of award (LoA) on April 4, 2018, for the project under the then Barisan Nasional-led administration.

Razeek said Wee’s statement on the project had failed to accurately reflect and describe the background of the matter.

On Aug 28, Wee had said the Cabinet had agreed to convert the KVDT2 rehabilitation project to an open tender and to cancel the directly negotiated contract after it found that the project cost a lot less than the amount previously cited.

Wee and his predecessor, Loke Siew Fook, had engaged in a war of words over the cost of the project.

KVDT2 was one of the 101 projects costing RM6.61 billion claimed by the Perikatan Nasional government in Parliament recently as awarded through direct negotiation during the Pakatan Harapan government’s watch. -FMT

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