DBKL pays supplier RM4.1mil after main contractor fails to disburse payment

  • Nation
  • Monday, 11 Nov 2019

KUALA LUMPUR: Kuala Lumpur City Hall (DBKL) has paid RM4.1mil to a materials supplier for the Dato' Onn Roundabout development project after the main contractor filed to disburse payment to them.

Seagate Global Trading Sdn Bhd, which was awarded a contract to supply building and electrical materials to contractors developing the roundabout for the past five years, had issued a summons to DBKL in the High Court and won the case in May.

Federal Territories Minister Khalid Abdul Samad (pic) said DBKL had settled the RM4.1mil payment to the supplier and would recover the money made to the main contractor.

The main contractor for the project was Pelita Maintenance Resources Sdn Bhd.

"There was a deed of assignment signed previously that the payment should be made to the sub-contractor, which is Seagate, but the payment was made entirely to the main contractor – maybe because DBKL wanted to expedite settlement of the payment.

"So, we followed the court's instruction to pay up.

"Although there are views that DBKL should exhaust all means so that DBKL will not pay again, we decided not to appeal the case.

"We think we need to defend the supplier and subcontractor here as they are the victims," he said, adding that DBKL would blacklist the main contractor.

Previously, Seagate Global Trading had staged a protest on Sept 26 at the Dato' Onn Roundabout, demanding payment from DBKL.

A company representative at the protest said despite the court order, they had yet to receive payment.

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