KUALA LUMPUR (June 4): The federal government has today been allowed to take over the Klang Valley Double Tracking 2 (KVDT2) project site, after an injunction was lifted by the High Court.

Justice Datuk Lim Chong Fong, in his decision which was delivered online today, also asked Dhaya Maju LTAT Sdn Bhd to vacate the site and to stop work.

The decision was confirmed by senior federal counsel Azliza Ali to theedgemarkets.com.

However, Justice Lim is said to have allowed the company's application for an Erinford injunction to be in place that would last until June 24, pending an appeal to be made at the Court of Appeal.

An Erinford injunction is a prohibition for the matter to remain status quo. This is with regards to Justice Lim's order on April 7 that ordered Dhaya Maju LTAT through its employees, workers or representatives of the company to discontinue work at the KVDT2 project site.

The outcome of the Erinford injunction was confirmed by one of the lawyers representing the company to theedgemarkets.com.

In this present suit, the company had named the Malaysian government, Transport Minister Datuk Seri Wee Ka Siong, Keretapi Tanah Melayu Bhd and Opus Consultants (M) Sdn Bhd as defendants in a bid to stop the government from taking over the project and appointing new contractors following a study done by Opus Consultants that it could be constructed at a lower cost.

The company had also filed another suit and named the government and Wee as defendants for not getting compensation for the work already done.

It also filed a judicial review application to challenge and stop the government's decision to engage in another open tender exercise for the project after Dhaya Maju LTAT had already completed 24% of the project.

So far, the company has been paid RM137 million last December and another RM65 million in March for the completed portions of the project.

The company filed the challenges after being terminated by Wee last September resulting in the various legal actions filed

Wee had in August said the government will reopen the tender for the project after taking into consideration the results of an extensive study and investigation on the project’s cost.

The transport minister had said the open tender would be in the interest of optimising the use of public funds for large-scale infrastructure projects.

"This (Perikatan Nasional) government has closely scrutinised the viability of such projects to gain the best value for the country. For this reason, I wish to announce that the contract for the KVDT2 project will be reopened for tender, to which the Cabinet had agreed,” Wee had said.

Wee had been involved in a spat over this issue with his predecessor Anthony Loke on the matter after its termination.

Citing an affidavit by Datuk Mohamed Razeek Hussain Maricar, Loke had claimed in the Dewan Rakyat on Nov 17 that Wee had asked the company to subcontract the project to a firm from China — instead of carrying it out themselves. Wee, however, strongly denied the claim

Mohamed Razeek is the CEO of Dhaya Maju Infrastructure (Asia) Sdn Bhd, which owns 80% of Dhaya Maju LTAT.

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  1. Double tracking project suit: Jan 11 fixed to hear govt's motion for leave to appeal to apex court
  2. Dhaya Maju contemplates cross-examining Wee Ka Siong on KVDT2 contract termination
  3. Court of Appeal grants Erinford injunction to Dhaya Maju in KVDT2 project case