Govt terminated KVDT2 project contract yesterday, court told

The government yesterday issued a letter of termination for the contract of the  Klang Valley Double Tracking Phase 2 (KVDT2) rail project, the Kuala Lumpur High Court was informed today.

Senior federal counsel Nik Mohd Noor Nik Kar told this to judge Aliza Sulaiman during open court proceedings this afternoon.

This was as today was set for the hearing of contractor Dhaya Maju LTAT Sdn Bhd’s application for an interim injunction in relation to its main suit seeking to prevent the Perikatan Nasional (PN) administration from terminating the contract for the RM4.5 billion rail project.

Nik Mohd Noor said that the letter of termination was issued to Dhaya Maju LTAT via registered post yesterday.

He said that due to this new development, the two defendants - the government and Transport Minister Wee Ka Siong - now needed time to prepare a new affidavit in relation to the legal action.

Nik Mohd Noor is acting for both defendants.

“The letter of termination was issued to the plaintiff (Dhaya Maju LTAT) yesterday via registered post.

“We need to put this letter in the affidavit as this is valid to the (plaintiff’s interim injunction) application. (We) have limited time to prepare the affidavit.

“If possible, we seek for the defendants to be granted time to prepare the (new) affidavit until next Wednesday, and perhaps we can hear the matter (injunction application) on Friday (next week),” Nik Mohd Noor said.

The plaintiff’s counsel Kuhendran Thanapalasingam objected, saying that the court should just proceed with the hearing of the interim injunction application today.

“We have not received any notice of termination (for the contract with Dhaya Maju LTAT for the KVDT2 project). If my friend (Nik Mohd Noor) said there is a letter of termination, he has not produced a copy of the letter (in court today).

“My client here… we checked with the receptionist to the director. Nobody has received the letter,” Kuhendran said.

Nik Mohd Noor replied that he was informed earlier today that the letter of termination had indeed been issued to the company yesterday.

He added that due to this last-minute development, today's hearing ought to be postponed to next week so that the defendants will have time to include the letter of termination in their affidavit.

Injunction application thrown out

Aliza, however, ordered the parties to submit today over the plaintiff’s application for the interim injunction.

Yesterday, Malaysiakini reported that Dhaya Maju LTAT filed a second bid for an injunction in relation to the main suit seeking to prevent the termination of the rail project contract.

After brief submissions by the parties, Aliza dismissed the company’s interim injunction application.

“I have to take the same position like the earlier application last week,” the judge ruled, adding that the court would not make an order on costs.

Aliza was referring to the court decision on Friday last week dismissing an earlier injunction bid by Dhaya Maju LTAT in relation to the suit.

The injunction dismissed last week had sought to maintain the status quo between the plaintiff and two defendants, pending disposal of the main legal action.

The injunction dismissed today, meanwhile, had sought to maintain the status quo between the parties pending the plaintiff’s appeal to the Court of Appeal to overturn last Friday’s decision.

Previously, Malaysiakini had reported that the company filed the main suit against the government and Wee on Sept 7.

Among others, the writ of summons sought a declaration that “there exists a valid and binding contract between the plaintiff and the first defendant by way of the 'surat setuju terima' dated Aug 19, 2019 (for the KVDT2 contract)”.

The plaintiff seeks a declaration that “any termination or cancellation of the contract by the first and/or the second defendant would be invalid, unlawful and wrongful”, among others.

On Aug 28 via a media statement, Wee reportedly said that the government would reopen tenders for the KVDT2 project.

A few days later on Aug 31, Dhaya Maju LTAT reportedly said that the PN government had no basis to terminate the existing contract for the project.

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 Pakatan Harapan was in power.

KVDT2 was the largest in terms of value on the list.

Editor's note: Based on legal advice, the commenting feature for the above article has been disabled.

Loke challenges PM to declassify cabinet memorandum on KVDT2

MOT to reopen tender for largest contract in ‘direct tender’ list

Delayed: Phase 1 of KVDT project to be completed early 2021

Rehabilitation of double track could be ready in 5 years: Loke