The Shah Alam High Court has ordered the main sub-contractor for the troubled Rawang-Ipoh electrified double-tracking railway project to pay almost RM2.3 million to one of its sub-contractors for work done to date.

According to the court order dated Dec 30 last year, Teknik Naga Sdn Bhd must pay Overseas Tunnelling & Construction Sdn Bhd RM2,189,739.09 in monies owing, loss of profit totalling RM150,000, and eight percent annual interest on both the sums from July 10 last year until judgment date.

In addition, the company was ordered to pay an eight percent annual interest on both the sums from the date of judgement until full settlement is made, as well as RM225 as cost of filing the action.

No appearance was entered by the defendant, Teknik Naga, the main sub-contractor handling one portion of the 179km stretch.

Contacted today, however, the company's lawyer confirmed that it will apply to set aside the judgement this week.

"It will surely pay if it has the money, but the main party concerned is dilly-dallying payments," he added.

DRB-Hicom, the main contractor for this stretch, has firmly denied such allegations.

'Payments outstanding'

This is the first successful outcome of a court case following a series of claims by a group of sub-contractors that Teknik Naga had failed to pay them for work done since 2002.

Several second-, third- and fourth-tier contractors hired by Teknik Naga have complained that the company owed them between RM40,000 and more than RM1 million following the abrupt termination of their services last July.

Teknik Naga was hired by Perspec Prime Sdn Bhd, a subsidiary of public-listed DRB-Hicom Berhad, which handles one portion of the 179-km stretch.

The Rawang-Ipoh electrified double-tracking railway project has been dogged by claims and counter-claims of non-payment.

Sub-contractors have claimed that the hitch in payments has pushed work behind schedule, contrary to assurances by the government that the project was right on track.

They have also appealed to the government to ensure that all payments are settled before Chinese New Year, which falls on Jan 22.

Meanwhile, several opposition parliamentarians will be meeting Transport Minister Chan Kong Choy today to resolve the matter, particularly after the latter's assurance that all undisputed payments would be settled immediately.

The four sub-contractors for the Rawang-Ipoh project are Emrail Sdn Bhd, United Engineers (M) Bhd, Gadek Bhd and IJM Sdn Bhd, all handling various portions of the railway line.

This is the first segment of the north-south electrified double-tracking project on which Malaysia has embarked, as part of a bigger proposal to lay a 5,500-km trans-Asia railway track between Singapore and southern China.