The main contractor for the multi-billion ringgit Rawang-Ipoh electrified double-tracking project DRB-Hicom Bhd has distanced itself from the controversy of non-payment for work done, an issue that has dogged the deal for some time now.

A spokesperson from the public-listed company insisted that DRB-Hicom was a good paymaster to its four main sub-contractors - Emrail Sdn Bhd, United Engineers (M) Bhd, Gadek Bhd and IJM Sdn Bhd - who are working on different portions of the railway line.

"All payments are made once the certificate of completion is sent together with the invoice. The claims are then verified by the consulting engineers before being processed for payment," he said when contacted yesterday.

"As far as DRB-Hicom is concerned, we have kept to the schedule of payments with all our contractors," added the spokesperson who declined to be named.

He said DRB-Hicom was in the midst of processing the October-December payments.

"(But) it is very difficult for the main contractor to be responsible for payments involving sub-contractors and sub-sub-contractors," he added.

The company's spokesperson explained that the standard practice was to release payments in a cycle of 60 days following the submission of claims by the main sub-contractors.

"It works the same way for payments to the other sub-contractors as well. In fact, this has worked very well for other projects in the country."

Usually, he said, reports of payments to contractors and sub-contractors are sent to the Transport Ministry which monitors the payment process.

The spokesperson was responding to complaints by a group of sub-contractors claiming they had not received full payment for work done on the 179-km stretch.

Payment controversy

On Friday, malaysiakini reported that around 10 sub-contractors were demanding payments worth about RM6.5 million from Teknik Naga Sdn Bhd, a sub-contractor hired by Perspec Prime (M) Sdn Bhd - a subsidiary of DRB-Hicom.

Teknik Naga's portion of civil works on the railway line, about 10 percent of total works, costs an estimated RM38 million.

"Perspec Prime is not delinquent in payments to its sub-contractors. As far as we know, the company has paid all sub-contractors," added the spokesperson.

Meanwhile, sources involved in the project said Teknik Naga has been replaced by another company as a sub-contractor to Perspec Prime.

Both companies could not be reached for confirmation.

Industry sources said the government is now trying to arrange for payments to be made directly to the sub-contractors following Friday's complaints.

'Independent company'

Sources said that over the weekend, an 'independent team' was sent by the ministry to Teknik Naga's office.

"The team worked late into the night probing into13 files involved in the double-tracking project," sources said.

"The sub-contractors are appealing to the government to resolve the matter and the ministry is already working on something."

Sources said the direct payment arrangement was one of the recommendations made by the probe team.

At a press conference on Thursday, Transport Minister Chan Kong Choy said that undisputed claims would be paid immediately while disputed claims would have to be considered further.

He said there was nothing to stop the main contractor or main sub-contractors from making payments to their hired hands since the government has been releasing payments regularly based on the work in progress.

Sources' place the total figure for undisputed claims at almost RM14.5 million while disputed claims are said to be more than RM10 million.

The minister could not be reached for immediate comments yesterday.

The cabinet is expected to reach a final decision today on whether to proceed with the RM14.5 billion double-tracking railway project which was deferred last week.

The Rawang-Ipoh stretch is a part of this 623-km north-south rail project , which is the Malaysian portion of the 5,500-km trans-Asian line between Singapore and southern China.