Prasarana to contest court injunction on KLMFEP

Prasarana Malaysia Bhd, the asset and project owner for the Kuala Lumpur Monorail Fleet Expansion Project (KLMFEP), would be contesting the ex-parte injunction order that Scomi Transit Projects Sdn Bhd (Scomi) had obtained against the company.

President and Group CEO Datuk Azmi Abdul Aziz said Prasarana had directed its lawyers to challenge and overturn the court order.

"Prasarana is now taking steps to contest the legal proceedings commenced by Scomi against Prasarana.

"Hearing has been fixed for June 27 at the Kuala Lumpur High Court," he said in a statement.

Scomi obtained the ex-parte injunction order on June 21 which prevented Prasarana from terminating the project, which included the supply of 12 sets of four-car monorail trains to replace the current two-car train sets, which had been in service since 2003.

Initiated under the government's National Key Results Area- Urban Public Transport, the project was targeted for completion by July 2013.

"The project is now seriously overdue. If further delayed, it will adversely impact the travelling public at large, as well as other stakeholders," Azmi said.

He said if the project had been implemented and in service by now, it would also have incorporated advances in safety as well as provided improved access for persons with disabilities.

"The existing system has been running since 2003. The longer in use, the more the costs incurred to maintain its inefficiencies.

"The existing system is inadequate to meet current demands," he added.

Azmi also highlighted that under the Principal Contract, Scomi was obliged to provide a performance bond, which was to remain in force and in effect until the company had executed and completed the works.

"Scomi provided a performance bond dated Aug 1, 2011 and which was renewed several times, with the latest extension having expired on April 25, 2016.

"Prasarana had on June 2, informed Scomi of renewing the performance bond within 14 days, and failed to do. Hence, our issuance of the termination notice," he said.

He said Prasarana's position is that it is fully entitled to issue the termination notice as Scomi had failed to comply with the terms of the Principal Contract.