Dhaya Maju-LTAT told to sub-contract KVDT2 project tender to ‘China company’, former transport minister tells Parliament

Dhaya Maju Infrastructure and LTAT were told by the government to sub-contract the project tender of the Klang Valley Double Tracking Phase 2 to a ‘China company’, says former transport minister Anthony Loke. ― Picture by Miera Zulyana
Dhaya Maju Infrastructure and LTAT were told by the government to sub-contract the project tender of the Klang Valley Double Tracking Phase 2 to a ‘China company’, says former transport minister Anthony Loke. ― Picture by Miera Zulyana

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KUALA LUMPUR, Nov 17 — Former transport minister Anthony Loke has today revealed that Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) and its partner Lembaga Tabung Angkatan Tentera (LTAT) (DMIA-LTAT) were told by the government to sub-contract the project tender of the Klang Valley Double Tracking Phase 2 (KVDT2) to a “China company”.

Loke was citing an affidavit filed at the High Court on October 27 by DMIA-LTAT chief executive officer Datuk Mohamed Razeek Md Hussain Maricar to support an injunction the company had filed against the government for cancelling the project tender awarded to DMIA-LTAT.

“I would like to read the statement (affidavit): ‘I aver that the real reason of the delay and/or refusal of the Second Defendant (Wee Ka Siong) to execute the Revised Contract within the stipulated time was due to the fact that the Second Defendant (Wee Ka Siong) had the ulterior and improper intention and /or motive to injure the Plaintiff (Dhaya Maju LTAT) by terminating or cancelling the contract between the Plaintiff and the 1st Defendant (Government of Malaysia).

“On or about April 14, 2020, the Plaintiff had a meeting with the Second Defendant (Wee Ka Siong). In this meeting, the Plaintiff was asked to sub-contract the whole project to a ‘China company’. After the Plaintiff declined to do so, the meeting ended,” Loke said during his debate on the Budget 2021 Bill.

Loke’s revelation comes after the government said that it is ready to negotiate a “win-win solution” with the former tender companies (DMIA-LTAT) involved in the KVDT2 project.

On November 11, Minister in the Prime Minister’s Department Datuk Takiyuddin Hassan said the decision to seek an amicable settlement was made during the November 5 Cabinet meeting.

“So I don’t understand the rationale behind the decision to terminate the contract awarded to DMIA-LTAT in August when the project was already 24 per cent complete.

“The decision to terminate the contract has definitely exposed the government to huge law implications and likely having to pay damages amounting to RM1 billion. 

“Has the Finance Ministry included the allocation of damages estimation in Budget 2021?” Loke said. 

According to Loke, Transport Minister Datuk Seri Wee Ka Siong previously said it was necessary to renegotiate the contract as it was directly awarded for RM4 billion during the Pakatan Harapan administration.

He reminded Wee today that a previous transport minister, former MCA president Datuk Seri Liow Tiong Lai, had awarded the contract for RM5.2 billion before the 14th general election.

Last week, the government told the Parliament that DMIA-LTAT has sued over the termination of their project contract.

Last month, Wee said the KDVT2 project would continue pending a fresh open tender.

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