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Friday, July 9, 2010

Court throws out defence contractor's RM480 mil suit


Langkawi R&D Academy Sdn Bhd (Lardac) has failed in its controversial RM480 million suit against the defence minister, its secretary-general and government for alleged wrongful termination and breach of a defence contract.

Kuala Lumpur High Court justice Abdul Wahab Patail dismissed Lardac's application with costs. No grounds were given in Abdul Wahab's decision today. The judge also ordered Lardac to pay costs of RM20,000.

Lardac had filed a suit five years ago claiming for damages as a result of the wrongful termination and breach of the contract to undertake avionics upgrading and refurbishment works involving the first of 10 Royal Malaysia Air Force Northrop F5-E&F fighter jets.

This follows Lardac's assertion that the ministry had gone through the back door to allow its former partner, the British-based Caledonian Airborne Systems Ltd (CAS Ltd), to take over the upgrading works, despite awarding Lardac the contract on Oct 11, 2001.

It also claims that CAS Ltd does not have a specific contract to operate with the Malaysian government, and that no show-cause letter was given to Lardac as required before the government decided to terminate the contract.

The court decision was made without the hearing of witnessesdespite that they, including the ministry's former secretary-general Hashim Meon, were willing to come to court in April to testify for Lardac.

Lardac was represented by lawyer and Teluk Intan MP M Manogaran, while senior federal counsel Noramilia Mohd Saad appeared for the government.

In an immediate response, Lardac's founder Mohammad Abdullah said his company will file an appeal.

"It is surprising that no grounds were given in the decision. The decision today is highly suspicious in light that there is no trial ordered by the judge despite that witnesses were willing to come to testify," he said.

The court said that the grounds for the dismissal of the case will be given on Friday.

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