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Friday January 13, 2006

Metramac to pay RM65mil


PUTRAJAYA: Toll concessionaire Metramac Corporation Sdn Bhd is to pay RM65mil to Fauziah Holdings Sdn Bhd for claims under a signage and advertising agreement between the two parties. 

The order, which included 4% interest on the judgment sum from the date of writ until yesterday, was made after the appellate court allowed Fauziah Holdings’ appeal against the High Court decision in respect of the quantum. 

Court of Appeal judges Justice Gopal Sri Ram, Hashim Mohd Yusoff and Zulkefli Ahmad Makinuddin were unanimous in the decision. 

Justice Gopal, in his judgment, said there was sufficient documentary evidence that the claim was quantified under the agreement and, therefore, should not be assessed. 

The judge also allowed Fauziah Holdings’ claim for future loss of earnings held under trust, saying there was an express trust created in favour of that company which Metramac had to pay profit obtained under a future contract. 

Justice Gopal also dismissed a cross appeal by Metramac for a declaration that the agreement between it and Fauziah Holdings was null and void. 

Datuk Fauziah Abdul Karim and her mother Maimon Bee are the directors and shareholders of Fauziah Holdings. They were also the directors and shareholders of Syarikat Teratai K.G. Sdn Bhd (STKG), now known as Metramac Corporation Sdn Bhd. 

In July 1986, Fauziah Holdings, through STKG obtained a tender from Kuala Lumpur City Hall (DBKL) to design, construct, finance and operate the privatisation of a number of roads in and around the city, including Jalan Cheras.  

Some RM65mil worth of capital was brought in. 

The project was completed, but in September 1990, due to a public demonstration along Jalan Cheras, DBKL asked STKG to suspend toll collection. 

As a result, a compensation of over RM760mil was payable by DBKL to STKG but no monies were paid and Fauziah Holdings sued for breach of contract. 

On Oct 2, 2003, the High Court ruled in favour of Fauziah Holdings and held that Metramac was in breach of the agreements but ordered that the loss of advertising be assessed.  

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