Govt explains decision to reopen Klang Valley double tracking project tender

 

The government says the decision to cancel the KVDT2 contract and reopen the tender was made by the Cabinet and not solely by the transport minister.

KUALA LUMPUR: The government says its decision to reopen the tender for the Klang Valley Double Tracking Phase 2 rehabilitation project (KVDT2) was done to “optimise usage of public funds” in large-scale infrastructure projects.

In its defence filed in response to Dhaya Maju LTAT Sdn Bhd’s breach of contract lawsuit, the government said the decision was made collectively by Cabinet members, and not solely by Transport Minister Wee Ka Siong.

“The minister was merely exercising his statutory duty in conducting due diligence exercises over the KVDT2 project before presenting it to the Cabinet for a collective decision.

“Dhaya Maju LTAT’s presumption that he (Wee) was acting in a bad faith is baseless and mere allegations thrown against him,” it said.

The company had sued Wee and the government over their decision to terminate the contract to manage the double tracking line, saying there was no basis under the law for them to do so and reopen the tender.

It contended that Wee should be held liable for tort of misfeasance in public office because of his action, and wants a court declaration that the contract termination was unlawful.

The project 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.

In its defence, the government said Dhaya Maju LTAT’s contract has yet to be terminated at the time the lawsuit was filed last month and the company only received the official termination letter on Sept 29.

The court previously heard that the government issued the termination letter on Sept 25.

“We stand firm by saying we did not breach the contract with Dhaya Maju LTAT under the letter of acceptance’s terms. The minister in his media statement (on Aug 28) only informed the public about the Cabinet’s decision to reopen the tender.

“The media statement does not amount to a termination,” the government said, adding that Wee did not play a role in pushing for the termination.

Wee, in his press statement, said the Cabinet had agreed to convert the KVDT2 rehabilitation project to an open tender and cancel the directly negotiated contract after it found that the project cost a lot less than the amount previously cited.

The company has filed an appeal with the Court of Appeal against the High Court’s refusal to grant it a temporary injunction pending the disposal of this lawsuit.

Another High Court judge will hear Dhaya Maju LTAT’s application to initiate judicial review proceedings against the decision to terminate the KVDT2 contract on Nov 11. - FMT