Govt, Dhaya Maju settle KVDT2 legal action
The government and Dhaya Maju LTAT Sdn Bhd have settled a legal action over the termination of a contract between both parties over the Klang Valley Double Tracking (KVDT2) rail project.
Senior federal counsel Asliza Ali, who represented the government, informed the apex court this morning that the government is...
The government and Dhaya Maju LTAT Sdn Bhd have settled a legal action over the termination of a contract between both parties over the Klang Valley Double Tracking (KVDT2) rail project.
Senior federal counsel Asliza Ali, who represented the government, informed the apex court this morning that the government is withdrawing its related appeal.
“We have filed a notice of discontinuance on the (appeal) matter, and the respondent (Dhaya Maju) has no objection for the matter to be discontinued,” Asliza told the three-person Federal Court bench chaired by Vernon Ong Lam Kiat.
With the unanimous agreement of bench members Abdul Rahman Sebli and Mary Lim Thiam Suan, Ong then ordered for the government’s appeal to be struck out with no order as to costs.
When contacted after the online proceedings, Asliza confirmed that the withdrawal was done as the government and the contractor have settled the main legal action.
Today’s Federal Court matter is in relation to the government and Transport Ministry’s application for leave to appeal against a lower court’s greenlight for Dhaya Maju to proceed with a judicial review to quash the government’s decision to terminate the contract with the company.
Back on June 29, it was reported that the legal teams for both parties informed the Federal Court that they were close to resolving the civil action.
Filed on Sept 3, 2020, the judicial review seeks to nullify the government’s decision to cancel the contract for the KVDT2 project and to reopen the related tender.
In August 2020, Transport Minister Wee Ka Siong announced that the government would reopen the tender for the KVDT2 rail project, alleging that investigations found the RM4.475 billion price tag for the project was too high, despite cost-cutting measures made by the previous Pakatan Harapan federal administration.
The project came into the spotlight after Finance Minister Tengku Zafrul Abdul Aziz revealed details of the 101 contracts that were purportedly awarded through a direct negotiation process during the time Harapan was in power.
KVDT2 is the largest contract, in terms of value, on the list.
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