Ireka against GSB contract termination


PETALING JAYA: Ireka Corp Bhd, the contractor to Gammerlite Sdn Bhd (GSB) for works on Sabah Pan Borneo Highway Project – phase 1B recently saw GSB proposing a mutual termination of the contract on July 8.

The works were for the upgrading of roads from Kampung Lomou Baru to Kampung Toupus or also known as the Work Package 33.

“This proposal follows the termination of the project operation agreement between MTD Construction Sdn Bhd (the main contractor) and GSB, which was terminated on June 30, due to GSB’s failure to secure the required funding by the deadline set out in the POA,” Ireka said in its filing with Bursa Malaysia.

It said it doesn’t agree to the proposed mutual termination in its current form.

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