Can­cel­la­tion of agree­ment a com­mer­cial de­ci­sion, says DPM

New Straits Times - - News - FAIRUZ MOHD SHAHAR PUTRAJAYA news@nst.com.my

ABREACH of con­tract led to the can­cel­la­tion of the Bandar Malaysia project share sale agree­ment (SSA), Deputy Prime Min­is­ter Datuk Seri Dr Ah­mad Zahid Hamidi said yes­ter­day.

De­scrib­ing it as a com­mer­cial de­ci­sion, Zahid said the de­ci­sion to can­cel the agree­ment was made by TRX City Sdn Bhd’s board of di­rec­tors, as the pur­chas­ing com­pa­nies failed to set­tle the pay­ments.

“I was in­formed that the pay­ments had been de­layed many times, prob­a­bly more than 10 times. Hence, the SSA had to be can­celled due to the breach of con­tract,” he said, adding that Bandar Malaysia needed to be de­vel­oped within the stip­u­lated pe­riod.

“The can­cel­la­tion was fully based on a com­mer­cial de­ci­sion. When the buy­ers keep on de­lay­ing the pay­ment, we have to see this as op­por­tu­nity loss,” Zahid said af­ter at­tend­ing the Home Min­istry’s monthly assem­bly here, yes­ter­day.

Zahid said this when asked about the can­cel­la­tion of the SSA be­tween TRX City, Iskan­dar Wa­ter­front Hold­ings Sdn Bhd (IWH) and China Rail­way En­gi­neer­ing Corp (M) Sdn Bhd (CREC) for the Bandar Malaysia project.

On May 3, TRX City an­nounced that the SSA with IWH and CREC, in­volv­ing 60 per cent of the is­sued and paid-up cap­i­tal of Bandar Malaysia Sdn Bhd, had lapsed due to fail­ure of the pur­chas­ing com­pa­nies to ful­fil pay­ment obli­ga­tions.

It was re­ported that the con­sor­tium, IWH-CREC Sdn Bhd, had failed to pay RM7.42 bil­lion for the 60 per cent stake de­spite it be­ing granted re­peated ex­ten­sions since De­cem­ber 2015.

The Bandar Malaysia de­vel­op­ment is un­der the pub­lic-pri­vate part­ner­ship (PPP) model with an es­ti­mated cu­mu­la­tive gross de­vel­op­ment value of RM150 bil­lion. The long-term project is ex­pected to be com­pleted over the next 30 years.


Datuk Seri Dr Ah­mad Zahid Hamidi with the Im­mi­gra­tion De­part­ment’s new badge at the Home Min­istry’s monthly assem­bly in Putrajaya yes­ter­day. With him are (from left) Deputy Home Min­is­ters Datuk Masir Ku­jat and Datuk Nur Ja­zlan Mo­hamed, Home Min­istry sec­re­tary-gen­eral Datuk Seri Alwi Ibrahim and Im­mi­gra­tion De­part­ment di­rec­tor-gen­eral Datuk Seri Musta­far Ali.

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