Five of the 10 sub-contractors who are claiming non-payment of the balance of their contracted sum in the Rawang-Ipoh electrified double-tracking railway project, hope to resolve the dispute before Chinese New Year at the end of next month.

They are among a growing list of second-, third- and fourth-tier contractors who had supplied various equipment and services to Teknik Naga Sdn Bhd, the main sub-contractor for the portion of the 179-km railway project handled by Prospec Prime (M) Sdn Bhd.

Prospec Prime is a subsidiary of public-listed DRB-Hicom Bhd, the project's main contractor that has firmly denied holding back payments.

When met in Kuala Lumpur today, several of the sub-contractors claimed that the payments due to them, ranging from RM40,000 to over RM1 million, are for work done between six months and more than a year ago.

Lim Kok Choong, director of Exquisite Million (M) Sdn Bhd, a sub-contractor for one portion of the track, claimed he has been waiting for balance payments of more than RM900,000 since July.

"We were the main sub-contractor to Teknik Naga between July 2001 and February 2002. We were involved in the initial stages of the project, including the mobilisation of machinery, when our contract was abruptly terminated,"" he told malaysiakini .

More problems

"(However), it was agreed (in a letter from Teknik Naga dated February 16 last year) that we would be paid a token fee of three percent of the total contract value of RM37.5 million, amounting to RM1.1 million, within 12 months of our claims."

Lim said the problem has given rise to other problems involving his suppliers who were now breathing down his neck for payments.

Another sub-contractor, Sin Lianhup Sdn Bhd, claimed it was owed RM800,000 for supplying sand, stones and dump trucks to Teknik Naga between March 2003 and July 2003.

Its director, Tan Kai Lim, said more than 20 lorries were rented and they also supplied sand and stones.

"Then, Teknik Naga served us notice to stop work in July. I haven't been paid since May and I'm still waiting for the remaining RM800,000 to be settled."

He said Perspec Prime and Teknik Naga were now embroiled in a dispute where the former claims to have overpaid the latter, an argument that is being refuted by the latter.

Another sub-contractor, Specialist Grauting Engineers Sdn Bhd, claimed to be owed more than RM300,000 since July.

No certificate

In a letter to Teknik Naga dated Sept 12, the company stated it had completed the installation of jacked anchors and culvert works in July but had yet to receive a final certificate, which is necessary for the processing of payment claims.

Ng Teck Hui, who supplied four dump trucks between March and July 2003, claimed he has not received payment of more than RM67,000.

"I received a stop work notice but I haven't seen the money till today,"" he said.

Another sub-contractor, Lim Chin Hua Enterprise, claimed he is owed RM38,000 for supplying more than 10 dump trucks for the particular portion of the double-tracking project between Oct 2002 and February 2003.

Contacted today, Teknik Naga conceded that it did in fact owe its group of sub-contractors the remaining sum as per their contract, but refused to comment further on the issue.

Some of the sub-contractors have sent written complaints and appeals to the Transport Ministry secretary-general Zaharah Saari, but have not received any response yet.

Zaharah was not reachable for comments today.

Early this week, industry insiders said that Transport Minister Chan Kong Choy (photo) was trying to settle the non-payment issue by arranging for direct payments to the sub-contractors.