The Kelantan government is considering taking legal action against Amanah vice-president Husam Musa over his claim that the state government had terminated the contract of the company involved in the construction of the 10km People's Highway from Berangan Mek Nab to Bukit Tiu in Machang.

State Works, Infrastructure, Utilities and Information Technology Committee chairperson Hanifa Ahmad said the state government had held discussions with lawyers to study the contents of Husam's speech at an event recently, during which the claim was made.

"Actually, we did not terminate the contract of the company concerned (as alleged by Husam). It was a mutual termination after the company informed that it could not continue with the construction work due to certain pressures.

"It means that the company has handed back the project to the state government, and we agreed to it with certain condition,” he told reporters after the state executive council meeting at the Kota Darul Naim Complex in Kota Bahru today.

Hanifa said among the conditions agreed upon by both parties was that the state government had to pay RM50 million to the company for the eight months of work it had done at the site.

Apart from that, he said the company also agreed to not make any additional claims against the state government.

Hanifa said the state government was also investigating on the leak of confidential documents relating to the project which were produced by Husam at the event.

"This is an important agreement document, and we are studying if the document was released in any way by the company or its officers. We will take action against parties that leaked the contents of the document’s concerned,” he added.

- Bernama