MMC-Gamuda JV to pay firm RM109m to settle SMART dispute

PETALING JATA: MMCEG-Gamuda Joint Venture, which is 50:50 owned by Gamuda Bhd and MMC Corp Bhd, said yesterday it has agreed to pay Wayss & Freytag (Malaysia) Sdn Bhd RM109.14 million as a final settlement on a contract dispute involving the SMART (Stormwater Management and Road Tunnel) project.
Following the amicable settlement, the parties have taken steps to terminate the arbitration proceedings.
The MMCEG-Gamuda JV launched arbitration proceedings against Wayss & Freytag in 2008, after the latter made claims following its termination from the SMART job. Wayss & Freytag was to have constructed and completed the north tunnel drive of SMART. The JV, however, terminated Wayss & Freytag’s contract alleging work delays.
Gamuda and MMC said the settlement would save further costs and time as opposed to continuing with the protracted legal process that has been ongoing since 2008.
The settlement sum has been expensed off in prior years and will not have any material impact on Gamuda and MMC’s earnings.