KUALA LUMPUR (March 10): Scomi Engineering Bhd, which had obtained an ex parte injunction to restrain Prasarana Malaysia Bhd from terminating a RM494 million KL monorail expansion contract, said its work on the project was delayed by Prasarana’s failure to timeously certify and pay progress claims made.
In a filing with Bursa Malaysia today, Scomi Engineering said to date, it has completed 83% of the project works and will complete the project within the time that it is entitled to be given under the contract.
"As at today, Prasarana is still in breach of contract by failing to pay sums due to Scomi Engineering," it added.
Prasarana said yesterday that it had issued a notice to remedy to Scomi Engineering’s wholly-owned subsidiary Scomi Transit Projects Sdn Bhd for its failure to comply with Stage Gate Schedule 2 of the second supplemental contract to deliver 10 sets of new four-car monorail trains, including seven sets for revenue service by Dec 31 last year.
Prasarana said Scomi Engineering not only failed to comply with the schedule on the delivery of the trains, but also failed to submit any mitigation plan to remedy the delay as requested by Prasarana on Jan 4.
Under the notice to remedy, Scomi Engineering has 60 days from March 8 to comply with the notice, failing which, Prasarana would be at liberty to terminate its contract with the public transportation service provider.
In response, Scomi Engineering said it received a letter dated March 8 from Prasarana on March 9, which purports to be the said notice of remedy.
Scomi Engineering added that it has been advised by its solicitors that notice to remedy is in effect an admission by Prasarana that its earlier purported notices were defective.
"As it would be sub-judice, Scomi Engineering will refrain from commenting on Prasarana’s statement and what it termed to be a notice to remedy, except to say that Scomi will contest the validity of that notice and Prasarana’s rights to issue such a notice," it added.
Scomi Engineering went on to say that it remains committed to complete the project provided that Prasarana honours its contractual obligations, as it the only Malaysian company with the requisite technology and expertise.
Under the principal contract signed between Prasarana and Scomi Engineering in 2011, Scomi Engineering was contracted to deliver 12 sets of new four-car monorail trains, construct a new depot, install a new signalling system, as well as to upgrade the Kuala Lumpur monorail stations, including the electrical and mechanical systems, for a total contract value of RM494 million.
Scomi Engineering shares were not traded yesterday and today. The stock last closed on March 8 at 28 sen, for a market capitalisation of RM95.75 million.