The termination of MMC Gamuda as the contractor for the RM16.71 billion underground portion of the MRT2 project would result in immediate job losses, said the firm.
In a statement this evening, MMC Gamuda said this would affect over 20,000 personnel involved in the underground works from a supply chain of more than 600 Malaysian companies.
“Of the 20,000, over 3,000 are made up of MMC Gamuda JV staff, and of this, more than 60 percent are bumiputera.
“This will cause unnecessary hardship to a significant number of Malaysian workforce in an already slowing market.
“In addition, the termination will unjustifiably expose the firm to a flood of lawsuits from terminated employees, sub-contractors, suppliers, manufacturers, etc, whose contracts will similarly be terminated due to no fault of theirs,” it added.
With regard to the international re-tender exercise intended by the Ministry of Finance (MOF), MMC Gamuda said unless MOF significantly lowers the requirements, only foreign contractors would be eligible.
“The award will invariably be given to a foreign contractor who in turn will use experienced staff from their own countries,” it added.
Yesterday, Finance Minister Lim Guan Eng announced that the underground portion was cancelled after Putrajaya and MMC-Gamuda could not reach an agreement.
[More to follow] -Mkini
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