The government and contractor Dhaya Maju LTAT Sdn Bhd only need to hash out a few details in a bid to settle a legal action against the termination of a contract for the Klang Valley Double Tracking (KVDT2) rail project.
Legal representatives for both parties informed the Federal Court of this during online proceedings this morning.
Today was fixed for the government and Transport Ministry’s application for leave to appeal against a lower court’s greenlight for Dhaya Maju to proceed with a judicial review to quash the government’s decision to terminate the contract with the company.
Senior federal counsel Ahmad Hanir Hambaly@Arwi told the three-person bench chaired by P Nallini that parties needed one month to finalise a few unspecified details in the proposed settlement.
“At this time, I believe that negotiations have reached a stage where there are a few details that need to be finalised.
“Our side (government) only needs one month to decide whether to pursue a hearing,” said Hanir, who is acting for the government and ministry.
Dhaya Maju’s counsel Pang Huey Lynn informed that they are agreeable to a one-month adjournment of the present appeal, subject to further instructions from the company.
Nallini then told the counsel to take the matter seriously as the apex court needed to fix a suitable case management date to allow parties to update on whether they wished to proceed or withdraw the appeal.
Khoo Guan Huat, who also represents Dhaya Maju, said that “parties are very close to settlement”.
The bench - also presided by judges Vernon Ong Lam Kiat and Zabariah Mohd Yusof - set July 29 for case management.
Reopening KVDT2 tender
On April 14, 2021, the Kuala Lumpur High Court granted leave for Dhaya Maju to commence with a judicial review. The hearing of the legal action’s merits is still pending.
Judge Noorin Badaruddin also allowed a stay on the government’s decision to reopen a public tender for the project, pending disposal of the judicial review bid.
Filed on Sept 3, 2020, the judicial review seeks to nullify the government’s decision to cancel the contract for the KVDT2 project and to reopen the related tender.
Before the Kuala Lumpur High Court, Dhaya Maju also has an ongoing second legal action against the government concerning the termination of the KVDT2 contract.
The second legal action is a writ of summons seeking to nullify a letter issued by the government dated Sept 23, 2020, to terminate the contract of the project.
In August 2020, Transport Minister Wee Ka Siong announced that the government would reopen the tender for the KVDT2 rail project, alleging that investigations found the RM4.475 billion price tag for the project was too high, despite cost-cutting measures made by the previous Pakatan Harapan federal administration.
The project came into the spotlight after Finance Minister Tengku Zafrul Abdul Aziz revealed details of the 101 contracts that were purportedly awarded through a direct negotiation process during the time Harapan was in power.
KVDT2 is the largest contract, in terms of value, on the list.
Previously, Dhaya Maju also had a third legal action over the matter, namely a writ of summons.
However, that writ of summons was withdrawn to consolidate the legal actions over the KVDT2 issue. - Mkini
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