Scomi demands RM365mil payment from Prasarana

The first two of new four-car Malaysian-made monorail trains has started operation on Dec 20

KUALA LUMPUR: Scomi Engineering Bhd’s (SEB) unit Scomi Transit Projects Sdn Bhd has served payment claims amounting to RM365mil on Prasarana Malaysia Bhd (PMB) in relation to the Kuala Lumpur monorail fleet expansion project on Friday, a day after PMB gave it 14 days to renew a performance bond connected to the project in lieu of contract termination.

In a filing with Bursa Malaysia, SEB said PMB had issued the notice “despite continuous ongoing negotiations with PMB on the matter.”

Scomi Transit subsequently made the four payment claims totalling RM365mil as provided for under the Construction Industry Payment & Adjudication Act 2012 (CIPAA) in respect of contract price variations and claims for extension of time and related costs/price increases.

In the event PMB disputes the claims, SEB said, its unit would refer the claims to adjudication under CIPAA.

“Scomi Transit intends to fully enforce its rights under the contract in respect of the notice (from PMB), including taking all necessary legal actions acting on the advice of its solicitors,” it declared.