PETALING JAYA: Scomi Engineering Bhd (SEB) has lost its bid to stop Prasarana Malaysia Bhd from appointing another contractor to complete KL Monorail fleet expansion job.
In a filing with Bursa Malaysia, the company said its action has been rejected by the High Court today, with costs of RM20,000.
The action by SEB was pending arbitration proceedings against Prasarana over the alleged nullification of a third supplemental contract (TSC) with respect to the Kuala Lumpur monorail fleet expansion project.
To recap, Scomi Transit Projects Sdn Bhd (STP) filed an action against Prasarana in relation to the third supplemental contract of its monorail fleet expansion contract on July 3, 2017, after receiving a letter from Prasarana stating that one of the four conditions precedent had not been fulfilled within the specified period.
Prasarana claimed that this had led to its declaration of the third supplemental contract as null and void. The Kuala Lumpur Monorail Fleet Expansion Project was initially awarded by Prasarana to STP under a contract dated June 3, 2011. The contract involves, amongst others, the upgrade of the stations and systems of the Kuala Lumpur Monorail and replaces the old trains with 12 new four-car trains, six of which have been delivered with five in successful revenue service.
The action sought to stop Prasarana from appointing a third party contractor to complete the remaining works under the third supplemental contract pending disposal of arbitration between STP and Prasarana.
SEB’s share price rose 6.9% to close at 31 sen today with a total of 1.60 million shares traded. Its market capitalisation stood at RM106.01 million.
Source: The Sun Daily