KUALA LUMPUR (Feb 24): Gerbang Perdana Sdn Bhd had utilised claims from subcontractors it believed to be non-valid, to substantiate its own compensation claims to the Malaysian government after the famed 'crooked bridge' project was terminated, the Shah Alam High Court heard yesterday.
During cross examination by MTD-ACPI Engineering Sdn Bhd counsel Datuk Nitin Nadkarni, Gerbang Perdana general manager Nurul Huda Hashim confirmed Gerbang Perdana had, in the mutual termination of its contract with the ACPI-IC&E joint venture (JV), stated that the JV waived all its claims arising from the temporary stop work order issued by the government on the Malaysia-Singapore International Gateway project from Feb 4, 2004.
The stop work order was lifted in three stages from Feb 26, 2004, Oct 26, 2004 and Aug 22, 2005.
The JV also could not claim for the work done prior to February 2006.
However, Gerbang Perdana documents showed in its claims to the government, the company had used claims from the JV partners, IC&E Group Sdn Bhd and MTD-ACPI Engineering, prior to February 2006.
One such claim was submitted by IC&E Group for the "idling of bored piling rigs" in February 2004.
Nurul Huda defended the submission of documents, saying that Gerbang Perdana as the main contractor for the project, had incurred costs from the temporary suspension of works.
Presiding Judge Datuk Azimah Omar intervened, saying IC&E claims delivered to Gerbang Perdana for submission to the government were separate from that of Gerbang Perdana's losses.
Earlier during the cross examination, Nurul Huda said Gerbang Perdana had written to the government, seeking compensation for costs incurred from the termination of the project in 2006, which included losses suffered by subcontractors, suppliers and contractors.
She also affirmed Gerbang Perdana had sought MTD-ACPI Engineering and IC&E Group to submit their claims to the company for verification, before they were submitted to the government.
Nurul Huda also confirmed Gerbang Perdana did not inform the government that the JV contract had been terminated, and the JV had waived all its claims prior to February 2006.
Gerbang Perdana had taken the subcontractors to court over the latter’s claim to part of the compensation awarded by the government, on the termination of the project.
The JV had earlier claimed for part of the compensation from Gerbang Perdana for the termination of the project. However, this was refused by Gerbang Perdana.
In 2003, Gerbang Perdana was awarded a RM1.1 billion contract to build the popularly known 'crooked bridge', after talks to construct a bridge to replace the Johor Causeway began, under the leadership of then Prime Minister Tun Dr Mahathir Mohamad with the Singaporean government.
Gerbang Perdana, owned by the Ibex Group of Companies led by Datuk Yahya A. Jalil via Merong Mahawangsa Sdn Bhd, was also awarded a RM1.27 billion contract to build an Integrated Customs, Immigration and Quarantine (CIQ) Complex.
Work on the bridge had begun, by the time Mahathir's successor Tun Abdullah Badawi took over the helm of government.
Badawi subsequently scrapped the project on April 12, 2006.
According to then Works Minister Datuk Seri S. Samy Vellu on April 24, 2006, Gerbang Perdana had requested for RM99.7 million in compensation for the cancellation of the contract for the bridge's construction.
However, he added the government would make a final decision on compensation after the ministry's Quantity Surveyor Department had evaluated Gerbang Perdana's claim, based on justifications to be submitted by the company, and the Finance Ministry's approval.
This included compensation for the 712 days of stop work on the bridge from Feb 5, 2004, until Jan 18, 2006, to enable negotiations to continue between the Malaysian and Singaporean governments.
Gerbang Perdana was reportedly awarded RM257.4 million in total, for the termination of the project.
The hearing resumes on Friday at 9.30 am.