Railway project: Sub-cons want their money for work done
A group of sub-contractors are demanding for outstanding payments for work done on the multi-billion ringgit 179-km Rawang-Ipoh stretch of the electrified double-tracking project .
A group of sub-contractors are demanding for outstanding payments for work done on the multi-billion ringgit 179-km Rawang-Ipoh stretch of the electrified double-tracking project .
They claimed that despite completing the contracted work for more than a year, they have yet to be paid in full.
"We've only been given part payments, and even that was a small sum. We are still waiting for the bulk of what was due to us," said a sub-contractor who requested anonymity.
"Since then, we have not seen or heard anything regarding the payments."
The cost of civil works undertaken by Teknik Naga Sdn Bhd for one portion of the railway line and apportioned to four sub-contractors totals RM38 million.
Teknik Naga is a sub-contractor to Perspec Prime (M) Sdn Bhd, a subsidiary of public-listed DRB-Hicom Bhd - the main contractor for the Rawang-Ipoh electrified double-tracking project.
Payments stop
Another upset sub-contractor, when contacted today, said he has only received 20 percent of the total sum owed to his company, which runs into a couple of millions.
He said Teknik Naga had told the sub-contractors to stop work due to their inability to pay them, by which time the company had stopped making payments for about 4-5 months.
"(But) work is still going on. We heard that the main contractor (DRB-Hicom) hired another company to carry on with the works we were doing, though I'm not sure on what terms."
On Monday, about 10 sub-contractors met with PAS MP for Kubang Kerian, Husam Musa, to raise the issue of monies owed to them totalling some RM6.5 million.
Husam said the outstanding payments have not been settled for between six months and a year.
"Only part payments have been made over this period. I will be contacting the Transport Ministry for an explanation, especially since the main contractor has received payment.
"The opposition leader's office in parliament will try to resolve this matter the soonest possible, and will remain open during the period when the Dewan Rakyat does not sit," he told malaysiakini when met in Kuala Lumpur.
"These companies were involved in earthworks and drainage, supplying materials and transportation services."
Husam said the sub-contractors alleged that Perspec Prime (M) Sdn Bhd was responsible for withholding their payments despite getting the money from DRB-Hicom.
It remains unclear when DRB-Hicom received payment from the government and how much it was paid.
Perspec Prime declined to comment on the issue, referring malaysiakini to DRB-Hicom.
However, repeated attempts to contact the DRB-Hicom for comments today failed as key personnel were still on leave.
Minister's assurance
Yesterday, Transport Minister Chan Kong Choy had assured the sub-contractors whose bill has not been settled that the matter would be resolved soon, provided their claims are genuine.
He said there was nothing to stop payment of monies owing to the sub-contractors for work done on the central railway stretch which is a part of the proposed electrified double-tracking line spanning the entire peninsula.
"We discussed the issue (monies owing to sub-contractors) at (Wednesday's) cabinet meeting. These payments should be cleared (immediately) without any dispute," he told reporters in Bangi.
"The money has already been paid to the main contractor. I don't see why payment is not made."
The four sub-contractors for the Rawang-Ipoh portion are Emrail Sdn Bhd, United Engineers (M) Bhd, Gadek Bhd and IJM Sdn Bhd, all handling various portions of the rail line.
The overall work includes building new tracks, 13 new station buildings, renewal and realignment of the existing track, and various replacement and rehabilitation work, including overhead bridges and level crossings.
Chan said the issue of non-payment was taken up by the ministry's secretary-general Zaharah Shaari with the steering committee yesterday morning.
"In cases involving disputed claims, that will have to be thrashed out first," he said, adding that some sub-contractors claimed for work that did not reflect what was done on-site.
"Whether or not a claim is disputed will be determined by the project management company and the ministry."
Exact number unknown
Chan was also unable to provide a figure on how many sub-contractors have not been paid by DRB-Hicom.
"There are many sub-contractors and sub-sub-contractors below them. (But) we don't have the figures on them. But don't worry, we will resolve this very soon," he added.
He also stressed that the non-payment would not cause any further delay for the project, which was initially scheduled for completion on Dec 9.
But delays due to various reasons has pushed the completion date further with infrastructure work expected to finish a year from now, and systems works by the end of 2005.
The minister had also confirmed that the multi-billion ringgit northern (Ipoh-Padang Besar) and southern (Seremban-Johor Baru) grid of the electrified double-tracking railway project has been put on hold pending a final cabinet decision next week.
The Rawang-Ipoh stretch completes the 623km north-south Malaysian portion of the gargantuan 5,500km trans-Asia railway project linking Singapore to Kunming in southern China.


Are you sure you want to delete this comment?
This action cannot be undone.