PETALING JAYA: China Railway Construction Corporation (CRCC) has given an undertaking that it will settle outstanding payments arising from the light rail transit (LRT3) project by the end of November.
A group of sub-contractors and local suppliers are demanding payment amounting to RM58 million for work done and supplies delivered for the LRT3 project.
The company is said to be in the process of raising funds and has assigned 10 representatives to meet with the more than 50 sub-contractors and suppliers, the China Press reported today.
A consortium led by CRCC was awarded a RM1.6 billion package of the LRT3 project in August 2017.
A representative of the CRCC headquarters in China, who gave his name as Lee, said he, his colleague Dai Ai Min and eight others arrived in Malaysia at the end of September to meet with their creditors.
“The company has assigned 10 representatives and skipped the week-long China National Day celebrations to meet with the suppliers. We hope that the suppliers appreciate this,” he was quoted as saying.
In an interview with China Press, Lee said that while Malaysian Resources Corporation Bhd (MRCB) has yet to pay up RM60 million it owed, the CRCC headquarters understood the concerns of the suppliers and have thus decided to settle the debt.
MRCB bought out its turnkey contractor partner George Kent’s stake in the LRT3 project in September last year.
Lee said CRCC has previously planned to pay 25% of the outstanding amount at the end of September and settle the remaining 75% by next February.
“However the headquarters decided to collect the funds themselves and pay back RM58 million of outstanding amount by end of November,” Lee said.
He said the company was “actively in discussion” with suppliers and he and his nine fellow negotiators would remain in Malaysia until all outstanding matters have been settled.
“Currently the discussions with suppliers are going well,” he said.
A group of people representing some of the suppliers held a peaceful protest over the unpaid bills in Shah Alam last month.
The representatives of 30 of the suppliers said the CRCC had delayed payment of RM30 million for construction fees for nine months.
The remaining 20 suppliers were not represented at the protest. - FMT
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