Scomi takes Prasarana to court, again, over KL monorail contract

PETALING JAYA: Scomi Engineering Bhd’s wholly-owned subsidiary Scomi Transit Projects Sdn Bhd has filed an action in the High Court against Prasarana Malaysia Bhd over the alleged nullification of a third supplemental contract (TSC).

In a filing with Bursa Malaysia yesterday, Scomi Engineering said the filing was made on Monday (July 3) and the action is fixed for hearing on July 31, 2017.

Scomi Transit Projects, which is seeking for interim relief, is claiming that Prasarana be restrained and for an injunction to be granted restraining Prasarana from appointing a third party contractor to complete the remaining works under the TSC pending disposal of arbitration between the two parties.

Scomi Transit Projects is also claiming for costs and other relief which the court deems fit and proper.

In March 2017, Scomi Transit Projects and Prasarana signed a TSC in relation to the Kuala Lumpur monorail fleet expansion project. The objective of the TSC was to determine the legal proceedings between the parties amicably, while moving forward with the completion of the project works.

In May 2017 however, Prasarana claimed the TSC had lapsed because Scomi Transit Projects did not fulfil one of the four conditions in the agreement, putting the two parties at loggerheads again.

The Kuala Lumpur monorail fleet expansion project was previously awarded by Prasarana to Scomi Transit Projects under a contract dated June 3, 2011, involving the upgrade of the stations and systems of the Kuala Lumpur monorail and replacement of the old trains with 12 new four-car trains, six of which have been delivered with five in successful revenue service.

Scomi Engineering said 83% of the project works have been completed by Scomi Transit Projects despite extensive delays beyond its control and ongoing disputes relating to contractor claims.