Caretaker Prime Minister Ismail Sabri Yaakob has urged the works ministry to explain unpaid debts for the recently opened Damansara-Shah Alam Elevated Expressway (DASH), saying all outstanding payments must be settled.
“There must be reasons why the payments were not made. Although the project is completed, we must also see if the works ministry is satisfied,” Bernama quoted him as saying at the Malaysian Malay Contractors Association’s convention and annual general meeting here.
Ismail was responding to allegations of unpaid payments to some sub-contractors amounting to RM80 million that have caused difficulties to the businesses involved.
The 20.1km DASH connects to three major highways – the Guthrie Corridor Expressway (GCE), the Damansara-Puchong Expressway (LDP) and the Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT).
DASH also connects 13 interchanges from Taman Tun Dr Ismail to Puncak Alam.
Updates:
The Damansara-Shah Alam Elevated Expressway (Dash), which has been fully completed, is currently within the defect liability period and the final account will be issued as soon as all final claims of the work package contractors (WPC) have been analysed and certified by Turnpike Synergy Sdn Bhd, consultants and the WPC.
Projek Lintasan Damansara-Shah Alam Sdn Bhd (PLDash) is the concession holder of the Dash while Turnpike is the main contractor appointed by PLDash to construct and complete Dash, and both PLDash and Turnpike are wholly owned subsidiaries of Projek Lintasan Kota Holdings Sdn Bhd (Prolintas).
In a statement today, Prolintas said any claims, allegations of non-payment or disputes will be addressed via the processes stipulated in the contract between all parties including resolution via arbitration between Turnpike and the WPC.
“The main works in relation to the construction of Dash were divided into eight WPC via an open tender process, where the WPC in turn appointed various sub-contractors and suppliers for the purpose of completing the said works.
“Turnpike made payment via Interim Payment Certificates to the WPC after certification from the Lead Engineering Consultants and Consultant Quantity Surveyors. All claims from the WPC will be analysed, checked and certified via a transparent process in line with the percentage of work done and according to contractual terms and conditions,” it said.
Prolintas said this in response to the allegations of non-payment of RM80 million to sub-contractors in relation to the construction of Dash.
According to the company, Turnpike has discharged its duties and obligations as a responsible main contractor by making payment on all relevant claims that have been verified, certified and mutually agreed between the WPC and the consultants.
It said Turnpike has also implemented additional initiatives to assist the WPC including payment within 30 days as opposed to 60 days as provided in the contract; direct payment to the sub-contractors upon consent by the WPC; and bi-monthly payment to facilitate the cashflow of the WPC in order to complete the works successfully.
In the circumstances, if the sub-contractors or any party alleges that there are unpaid sums due to them from the WPC, Prolintas said the party should refer to the terms and conditions of the contract between the WPC and the sub-contractors for resolution of the same.
“Turnpike is committed to resolving any issues and disputes in accordance to the terms and conditions of the contract and the highest standards of corporate governance and transparency,” it said.
