Engineering company sues UiTM for RM40 million

Company claims the higher learning institution failed to pay it for supplying and maintaining electronic equipment at its campus.

PETALING JAYA: An engineering company from Shah Alam is suing Universiti Teknologi Mara (UiTM) for RM40.8 million in damages for allegedly breaching a contract.

In a statement today, Mutiara Gemilang Engineering Sdn Bhd’s managing director Ida Suraya Mustapha said the company had filed the suit at the Shah Alam High Court on April 20.

The company is claiming that UiTM failed to pay it for supplying and maintaining electronic equipment used at the university’s campus in Puncak Alam.

Ida revealed that the company had entered into a RM134.5 million contract with UiTM on Dec 9, 2010, and based on the terms of the agreement, UiTM must pay Mutiara Gemilang Engineering in stages for the work the company had completed.

However, she claimed that the university had committed a wrongdoing by making a RM11 million payment to a person and that the money was deposited into a personal account.

“This affected our income and we have to bear the losses by taking loans from third parties,” she said.

The company’s lawyer, Ismail Mohamed Arifin, claimed that losses incurred amounted to RM40.8 million.

Ida said the case will be re-mentioned on July 19 at the Shah Alam High Court. -FMT