Solar Project: CIDB sues Jepak Holdings, to claim RM1.65 mln levy

KUALA LUMPUR: The Construction Industry Development Board (CIDB) has filed a lawsuit against Jepak Holdings Sdn Bhd to seek an order for the company to pay more than RM1.65 million in outstanding levy to CIDB involving a hybrid solar project for 369 rural schools in Sarawak.

The hybrid solar project is linked to a corruption case involving the wife of former Prime Minister, Datin Seri Rosmah Mansor who is being tried.

CIDB as the plaintiff filed the suit through Messrs. Hazura Yusoff Partners on Dec 2, by naming Jepak Holdings as the sole defendant. The media obtained a copy of the document today through a search in e-filing.

According to the list of court cases, the case is set for online mention (e-Review) before High Court deputy registrar Maslinda Selamat on Jan 18.

In its statement of claim, CIDB said based on the provisions under the Malaysian Construction Industry Development Board (LPIPM) Act 1994, the plaintiff is entitled to impose a levy on any registered contractor before starting construction work with a total contract of RM500,000 and above, namely for a quarter per cent of the total contract price.

According to CIDB, on Nov 10, 2016, Jepak Holdings received the award appointment to carry out contract work known as "Proposed Implementation Through Direct Negotiations for Hybrid Photovoltaic (PV) Solar System Integrated Project and Maintenance and Operation of Diesel Gen-sets for 369 Sarawak Rural Schools ” worth RM1.25 billion.

CIDB said, in accordance with the provisions of Section 34 (2) of the LPIPM Act and Regulations 7 and 10 of the Construction Industry (Levy Collection) Regulations 1996, the plaintiff issued a Levy Imposition Notification Form starting from 12 June 2019 for a total levy of RM1,656,250.00.

"Defendant has also declared the solar project to the plaintiff through an online system and as a result of the declaration, the plaintiff's system has automatically generated a levy imposition form on the defendant.

"Therefore, the defendant is liable to pay to the plaintiff the amount of levy charged amounting to RM1,656,250.00 and the defendant's failure to settle the whole or the balance of payment of the levy for the contract is an offence under the LPIPM Act," according to CIDB in its statement of claim.

According to the plaintiff, a notice of claim dated 16 August 2019 was issued to the defendant to claim the payment of the outstanding levy amount which must be paid by the defendant to the plaintiff, but until now the defendant still failed to settle the payment of the levy.

Therefore, the plaintiff is demanding that the defendant pay the remaining outstanding levy amounting to RM1,656,250.00 as of August 16, 2019 with interest, costs and other relief as the court deems fit.

-- BERNAMA