CIDB drops RM1.65 million Jepak Holdings lawsuit
THE Construction Industry Development Board (CIDB) has withdrawn its suit seeking payment of over RM1.65 million in outstanding levies from Jepak Holdings Sdn Bhd over a solar hybrid project for 369 rural schools in Sarawak.
The project is linked to an ongoing corruption case involving Datin Seri Rosmah Mansor, the wife of former prime minister Datuk Seri Najib Razak.
Counsel Afifah Afif, who acted for the solar company, said CIDB had withdrawn its civil action suit when the matter came up for case management before High Court deputy registrar Maslinda Selamat yesterday.
“They decided to withdraw the suit after the judgment-in-default against our client was set aside. They don’t have a case against our client,” she said, adding that the court made no order as to costs.
In the proceeding, which was conducted online, counsel Nor Ahyani Ahmad appeared for CIDB.
On March 9, the High Court allowed Jepak Holdings’ application to set aside a judgment-in- default order which was obtained by CIDB for the company to pay the money.
The company filed the application on Feb 11, seeking for a court order to set aside the default judgment dated Jan 13 for RM1,656,250 to be paid at the interest rate of five per cent per annum from the date of judgment, as well as costs amounting to RM1,500.
In its affidavit of support, Jepak Holdings judicial manager Datuk Mohd Afrizan Husain, said the company had, on Jan 16, submitted an application to place itself under a judicial manager to protect it from ongoing claims from creditors.
Afrizan claimed that Jepak Holdings did not receive the writ of summons and statement of claim filed by CIDB, and only found out about the legal action against it through a news portal on Jan 15.
He also claimed that Jepak Holdings had no intention to remain absent from the hearing, because if it had received the writ of summons and statement of claim, it would have defended itself.
On Jan 13, the High Court granted CIDB’s application for a judgment-in-default to be entered against Jepak Holdings following the company’s failure to appear in the lawsuit.
In its statement of claim filed on Dec 2, last year, CIDB said based on the provisions under the Malaysian Construction Industry
Development Board Act 1994, it reserved the right to impose a levy on any registered contractor before commencing construction work on projects valued at RM500,000 and above for a quarter per cent of the total contract price.
According to CIDB, on Nov 10, 2016, Jepak Holdings was appointed to carry out contract works known as the “Proposed implementation through direct negotiations for Hybrid Photovoltaic Solar System Integrated Project and maintenance and operation of diesel gen-sets for 369 rural Sarawak schools” worth RM1.25 billion.
CIDB said a notice of claim, dated Aug 16, 2019, was issued against the defendant to claim the outstanding levy amount, which had yet to be paid.
Therefore, the plaintiff demanded that the defendant pay the RM1,656,250 due up to Aug 16, 2019, with interest, costs and other relief deemed appropriate by the court.
They don’t have a case against our client. AFIFAH AFIF
Jepak Holdings’ counsel