Scomi sues Prasarana over ‘nullification of contract’

prasarana-scoomiPETALING JAYA: A major vendor to government-owned transport company, Prasarana Malaysia, has taken legal action over what it said was the nullification of a contract.

Scomi Engineering, which supplies the trains for the Rapid Rail’s Monorail line, filed its legal action against Prasarana, over the latter’s alleged decision to nullify the third supplemental contract dated March 3, 2017, under the Kuala Lumpur monorail fleet expansion project, Star reported.

The company said its subsidiary, Scomi Transit Projects Sdn Bhd, filed the action in the High Court of Malaya on Monday.

The contract, which was awarded on June 3, 2011, included Scomi Transit having to replace old trains with 12 new four-car trains. Six trains were already delivered.

However, early last month, Rapid Rail said it had grounded all of its four-car train sets due to safety reasons.

Rapid Rail CEO Zohari Sulaiman said the trains were suspended after Rapid Rail identified several areas of risk posed by the trains which could harm the safety of its users.

“The trains had been handed over to the supplier, Scomi, for re-examination and rectification and we have briefed the Land Public Transport Commission (SPAD) on the matter,” he had said.

According to the filing by Scomi Transit, Prasarana had informed them, in a letter, dated June 28, 2017 that the supplemental contract had lapsed and was null and void over the lack of fulfillment of a condition set out in the contract.

However, according to the daily, Scomi Transit had on June 14, 2017 issued a notice of dispute to Prasarana to refer the issue to a dispute adjudication board for resolution, with both parties agreeing to refer the alleged nullification dispute to the dispute adjudication board.

Scomi Transit claims it had completed 83% of the project works despite extensive delays beyond its control and ongoing disputes relating to contractor claims.

“The board of the company wishes to inform that the effect of the action on the ongoing business performance of the company is dependent on the outcome,” Scomi Transit said in a statement.

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