Bank Negara Malaysia today said its termination of Bumiputera contractor H&I Niaga Sdn Bhd in the final stages of construction for the Malaysia Financial Services Resource Centre was a result of contractual dispute.

The central bank said that prior to the termination, the company asked for arbitration into the dispute but pulled out at the last minute.

"H&I Niaga had initially referred the contractual dispute for arbitration but, on the first day of the hearing, H&I Niaga withdrew from the arbitration process," it said in a statement yesterday.

Last Sunday, H&I Niaga publicly claimed despite rushing to complete the resource centre, Bank Negara refused payment for the work done.

bank negara fsrc building 010712 amerudin ismail This, according to the company's executive director Amerudin Ismail, had caused the company's collapse as it faces winding up by Affin Bank because it could not afford to pay its creditors.

H&I Niaga had since filed a lawsuit against Bank Negara though the suit may be delayed due to the winding up action.

Petaling Jaya MP Tony Pua who is assisting the company had charged that Bank Negara wanted to see the company go bust to absolve its responsibilities.

In the statement, Bank Negara stressed that it had a robust governance process in place on all matters undertaken by it.

" The Bank has also maintained detailed documentation on every stage of the construction of the building including records on the basis for the decisions made.

"In view that the relevant party has filed a suit in the court, Bank Negara Malaysia will take the necessary course of action accordingly," it said.