Scomi Transit files suit against Prasarana over media statements

Scomi Transit Projects Sdn Bhd (STP) has filed a suit against Prasarana Malaysia Bhd and its subsidiary Rapid Rail Sdn Bhd over their media statements on the safety concerns and risks associated with four-car trains manufactured by it.

In a filing with Bursa Malaysia yesterday, Scomi Engineering Bhd said its unit STP was seeking damages (amount unspecified) as well as an order for the removal and/ or retraction of media statements dated May 14, June 7 and June 12 this year.

It also wants Prasarana and/or Rapid Rail, which operates the Kuala Lumpur Monorail, to issue “a suitable correction and apology” within seven days from the date of the High Court’s judgment.

STP also seeks an order restraining Prasarana and/or Rapid Rail whether by themselves or through others from publishing similar

statements of and concerning STP whether on their website or by any other publication.

According to Scomi, the High Court had on June 21, 2017, granted an injunction on an ad interim basis to restrain Prasarana and/or Rapid Rail from making statements concerning STP pending the disposal of STP’s application for an interim injunction, which is now fixed for hearing on July 27.

It added: “The legal action and injunction application have become necessary after Prasarana and/or Rapid Rail issued the statements and failed to respond within the deadline given, to the notice of demand issued by STP’s solicitors on June 8, requiring Prasarana and/or Rapid Rail to, among others, cease and desist from making further statements relating to the grounding of the four-car trains and publish a suitable apology by media release.”

Scomi said the pending litigation did not affect the ongoing business performance of the company.

Under a RM494mil contract dated June 3, 2011, STP is tasked to upgrade the Kuala Lumpur monorail stations and the electrical and mechanical system, build a new depot, and deliver 12 sets of new four-car trains.

The dispute between Prasarana and Scomi has stretched on for over a year (since early last year) after Prasarana moved to terminate the contract, saying that STP had failed to deliver trains on time and that it did not submit a plan to remedy the delay.

That led to STP going to court in order to restrain Prasarana from wrongfully terminating the monorail fleet expansion contract.

On June 7 this year, Rapid Rail said in a statement that it had grounded its four-car train sets since mid-May due to safety reasons.

The following day Scomi said these trains were “fit for operation” based on full inspection being carried out.

On June 12, Rapid Rail chief executive officer Datuk Zohari Sulaiman said in a statement: “Despite the declaration from Scomi that the trains are fit for operations, as a responsible, professional and experienced urban rail operator, Rapid Rail will not put public safety at risk.

“Rapid Rail will only redeploy the trains to revenue service when they are certified safe by an independent consulting engineer.”