Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on June 28, 2016.

 

KUALA LUMPUR: A project delivery partner in the Klang Valley Mass Rapid Transit (KVMRT) project jointly controlled by MMC Corp Bhd and Gamuda Bhd has been served with a claim of over RM300 million for allegedly breaching a land acquisition contract.

In separate filings with Bursa Malaysia yesterday, MMC and Gamuda said MMC-Gamuda KVMRT (PDP) Sdn Bhd — along with Mass Rapid Transit Corp Sdn Bhd (MRT Corp) and other parties — is being sued by Accolade Land Sdn Bhd.

“The suit is premised on an alleged breach of an alleged contract between Accolade and MRT Corp relating to the acquisition of land belonging to Accolade by MRT Corp for the KVMRT project,” the filings stated.

MMC and Gamuda said Accolade is claiming damages in the sum of RM303.53 million with interests and costs.

They said MMC-Gamuda will take steps to defend itself, and that the suit will not have any significant financial and operational impact on MMC and Gamuda for the financial year ending Dec 31, 2016.

No details of the land in question were disclosed in the filings.

According to a search done on the Companies Commission of Malaysia, Accolade directors Tan Teck Keong, Chew Gaik King and Kee Ju-Hun are also directors of Tenggara Teguh Sdn Bhd.

According to Tenggara Teguh’s website, Tenggara Teguh, as well as Accolade Land, Kasturi Anggun Sdn Bhd and Sunrise Impetus Sdn Bhd, are involved in property development, management and investment.

Other directors of Accolade Land are Datuk Tan Jee Meng, Ng Soon Hong and Bong Fean Loo.

Shareholders of Accolade Land are Jalir Emas (M) Sdn Bhd (with a 57% stake), Kreatif Teguh Sdn Bhd (24.57%), KG Capital Sdn Bhd (9.21%) and Kenoza Sdn Bhd (9.21%).

For the financial year ended June 30, 2016, Accolade Land reported a profit after tax of RM827,346 on the back of a RM32.42 million revenue.

Its current assets stand at RM112.06 million, while its current liabilities stand at RM65.03 million. Its reserves stand at RM27.21 million. This is not the first case involving disputes over land acquired for the MRT project.

On Jan 8, 39 strata title owners filed for a judicial review of the authority’s approval for the acquisition of Ampang Park mall for an underground passage to be built between the planned MRT station and the existing Ampang Park LRT station.

The owners were seeking a court declaration that the government’s decision to acquire the mall was illegal and unconstitutional pursuant to the Land Acquisition Act 1960.

They were also seeking the courts to quash any further proceedings related to the land acquisition. However, the owners later agreed to remove the federal government and the federal territories ministry from the suit, with only two remaining respondents of the judicial review being the federal territories director of lands and mines office and the federal territories land administrator.

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