The contractor, Dhaya Maju LTAT has taken Putrajaya to court over the cancellation of its contract.
Speaking in the Dewan Rakyat, de facto law minister Takiyuddin Hassan did not give reasons for the cancellation of the project, adding that the Attorney-General’s Chambers (AGC) had advised Putrajaya to have “adequate facts” to support the action.
He acknowledged that Dhaya Maju LTAT had filed a lawsuit against the government, alleging breach of contract. The company had sought an injunction as well as a judiciary review of the cancellation order.
However, Takiyuddin said, the government is open to any renegotiation and to achieve a “win-win” solution to avoid the civil suit going for full hearing.
“I am confident that renegotiation is a way to achieve a win-win solution,” he said in reply to a question from Loke Siew Fook (PH-Seremban), who asked about the ACG’s advice to the government on its decision to cancel the project and its legal implications.
After hearing Takiyuddin’s explanation, Loke asked if the Cabinet had discussed in detail the advice provided by the AGC “as the project is bound by a contractual obligation”.
Loke called on the government to review its decision as the civil suit may cost it “billions of ringgit”. He said that if the case proceeded in court, the project may not be allowed to continue.
The proposed KVDT 2 spans 110km, involving two KTM railway tracks – one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.
It was previously reported that the transport ministry’s decision to cancel the awarding of the project and reopen it for tender followed Finance Minister Tengku Zafrul Aziz’s revelation that the PH government had awarded 101 projects through direct negotiation.
In 2017, the Barisan Nasional administration awarded the project to Dhaya Maju- LTAT but the contract was cancelled after the change of government in 2018.
The Pakatan Harapan administration then reappointed Dhaya Maju-LTAT to continue the project after a reduction in its scope and costs.