Sixteen contractors who built a steam boiler plant in Kerteh, Terengganu, claim that the government is now operating the facility illegally, while refusing to pay them for building it.

The contractors were first hired by a private entity, to build the Kerteh plant in 2014. The plant was to sell steam to two foreign companies, one from France and the other from South Korea.

However, after getting the plant up at an operational stage, everything began to fall apart.

"After we completed the plant in July 2014, none of the contractors was paid," said project management consultant Mohamad Khalil Ishak.

He claimed that the private firm's parent company was unable pay them RM26 million in unpaid dues.

Following long negotiations, Khalil said the government stepped in, and BiotechCorp, an agency under the purview of the Science and Technology Ministry, took over the company which commissioned the plant in March 2015.

Minutes taken down by the contractors for a meeting between them, the Malaysian Investment Development Authority (Mida) and BiotechCorp on March 30, 2015, showed that BiotechCorp intended to keep the steam boiler plant open, and had assured the contractors would receive their money.

In another minutes of the meeting dated Dec 22, 2015, the contractors were reportedly assured by a Finance Ministry official that the government was seriously looking into resolving their non-payment issue.

But after more months of waiting, one of the contractors, Yassin Salim, said he received bad news.

“I managed to meet Second Finance Minister Johari Abdul Ghani in person, and he says that the Finance Ministry will not be paying us the money we're owed," Yassin said.

This, he said, is despite the government making money from selling steam from the plant.

When contacted, Johari confirmed that the Ministry of Finance (MOF) will not be paying the contractors.

"Yes. Because MOF is not a party to the contract," Johari told Malaysiakini.

He added that just because the government sought to mediate the dispute between the contractors and the company which hired them, did not mean that the government is guaranteeing them payment.

Johari also denied that BiotechCorp was running the facility, saying it was instead being operated by a receivership firm.

The plant was placed under receivership after the commissioning company failed to service a business loan.

However, the contractors said the plant should not be in operation. They cited three warning letters, two from the Kemaman Municipal Council (MPK), and another from the Fire and Rescue Department, ordering the facility to be vacated.

The latest warning from MPK came on April 12 this year, which, like the previous in April 2015, said the building was not fit to be occupied because it did not have a Certificate of Completion and Compliance (CCC).

The contractors added that there are no fire safety equipment either.

In the meantime, the group said, they are struggling to make ends meet, with some claiming to be harassed by money lenders, while the government allegedly made profits from their unpaid work.

“We are suffering. Some of us have taken loans worth millions. The suppliers and banks are chasing us for the money.

"We have been waiting for the last two years," Khalil said.

Seemingly running out of options, the contractors said they are now mulling pursuing legal action to get the money they are owed.

They hope that Prime Minister Najib Abdul Razak can step in and solve their woes.

Malaysiakini has contacted Biotech Corp Malaysia, and the company which originally developed the project for a response to the allegations made by the contractors.

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