Sunday, June 26, 2016


KUALA LUMPUR, 26 June 2016 – Prasarana Malaysia Berhad (Prasarana) – the asset and project owner for the Kuala Lumpur Monorail Fleet Expansion Project (KLMFEP) – today announced that it would be contesting the ex-parte injunction order that Scomi Transit Projects Sdn Bhd (Scomi) has obtained against the company.

In stating this, its President and Group CEO, Dato’ Azmi Abdul Aziz said that Prasarana has directed its lawyers to challenge and overturn the court order. 

“Prasarana is now taking steps to contest the legal proceedings commenced by Scomi against Prasarana. Hearing has been fixed on June 27 at the Kuala Lumpur High Court,” he said in a media statement.

Scomi obtained the ex-parte injunction order on June 21 which prevented Prasarana from terminating the project, which included supply of 12 sets of four-car monorail trains to replace the current two-car train sets, which had been in service in 2003.

Initiated under the Government’s National Key Results Area- Urban Public Transport, the project was targeted for completion by July 2013.

“The Project is now seriously overdue. If the project is further delayed, it will adversely impact the travelling public at large, as well as other stakeholders including the Ministry of Finance, Ministry of Transport, Suruhanjaya Pengangkutan Awam Darat (SPAD), Prasarana and its subsidiaries.

“Had it been implemented and in service by now, the project would also have incorporated advances in safety as well as have provided improved access for persons with disabilities. These enhancements have been delayed and the public has been inconvenienced as a result.

“The existing system has been running since 2003 and the longer the current system is used, the more cost will be incurred to maintain the inefficiencies of the current system.

"The existing system is inadequate to meet current demands,” he added.

Azmi also highlighted that under the Principal Contract, Scomi was obliged to provide a performance bond, which is to remain in full force and in effect until Scomi had executed and completed the works.

“Scomi provided a performance bond dated 1 August 2011; which was renewed several times and which latest extension expired on 25 April 2016. Prasarana had on 2 June 2016 informed Scomi that they are to renew the performance bond within 14 days, and they have failed to do. Hence, our issuance of the termination notice.

“Prasarana’s position is that we are fully entitled to issue the Termination Notice as Scomi had failed to comply with the terms of the Principal Contract that required it to ensure a performance bond was in full force and effect until full execution of the works,” he explained.

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