Scomi stops Prasarana from naming new contractor for KL monorail expansion project

PETALING JAYA: Scomi Engineering Bhd failed in its bid to stop Prasarana Malaysia Bhd from terminating its monorail contract, but succeeded in restraining Prasarana from appointing another contractor, until an appeal against the dismissal of its lawsuit is heard.
Scomi Engineering told Bursa Malaysia Bhd that the court did not extend the interim injunction granted on July 22, 2016, however made an order restraining Prasarana from appointing another contractor for the project until the appeal hearing.
On July 25, Scomi Transit Projects Sdn Bhd, a wholly owned subsidiary of Scomi Engineering, filed an appeal against the dismissal of the originating summons filed on June 20, which has been fixed for hearing on Aug 16.
In a filing with Bursa Malaysia yesterday, Scomi Engineering said it will challenge the purported termination of the contracts between Scomi Transit Projects and Prasarana.
Scomi Transit Projects had on July 21 filed a notice of abitration for wrongful termination of the contracts by Prasarana and will continue pursuing its rights in arbitration.
Scomi Transit Projects will also continue to pursue its extension of time and variation order claims pursuant to the Construction Industry Payment & Adjudication Act 2012 and in arbitration and all other claims in line with its entitlements. These will mitigate any potential adverse impact on the financial performance of the SEB Group during the current financial year, which may arise from the purported termination,” it said.
The contracts between Prasarana and Scomi Transit Projects are in relation to the fleet expansion project, which involves the upgrading of the stations and systems of the Kuala Lumpur Monorail as well as the replacement of old trains with 12 new four-car trains, six of which have been delivered.
Scomi Engineering said 83% of the project works have been completed by Scomi Transit Projects despite extensive delays beyond its control and ongoing disputes relating to contractor claims.