KUALA LUMPUR – DASH developer Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) has deemed reports of the suffering of terminated subcontractors for the highway project as “grossly exaggerated”.
In a statement published on its social media platforms, Prolintas said the financial difficulties faced by subcontractors as reported in The Vibes yesterday are a matter between the subcontractors and the work package contractors (WPCs).
It even proceeded to label the report “misleading” and “outright false”.
Prolintas executives met with The Vibes prior to the report being published but declined to go on record, hence, the subsequent report only carried the statements of some of the affected subcontractors.
“To clarify, the construction of Projek Penswastaan Lebuhraya Bertingkat Damansara-Shah Alam (DASH) involved eight work package contractors. These WPCs were appointed by Turnpike Synergy Sdn Bhd which is a G7-qualified contractor and a wholly owned subsidiary of Prolintas.
“These WPCs in turn, appointed various subcontractors to complete the works in their respective work packages. The main obligation of each WPC is to deliver the works within the stipulated contractual period and within the express terms and conditions of the respective contracts with the WPCs,” Prolintas said in its statement today.
“Prolintas wishes to clarify that the WPC mentioned in the report was terminated in accordance with the express terms and conditions of the contract between (Turnpike Synergy) and the WPC and that this matter is currently a subject of an ongoing arbitration process.”
Last year, The Vibes reported that subcontractors for the project were owed around RM80 million.
In June 2021, The Vibes reported on a legal dispute between turnkey contractor Turnpike Synergy and main contractor Panzana Enterprise Sdn Bhd that may leave the former’s subcontractors high and dry to the tune of RM100 million.
Panzana was handling all payments to contractors until they were terminated and Turnpike Synergy took over without signing new agreements with the contractors.
A consortium of contractors, Melima Consortium, is now suing Turnpike Synergy for RM100 million in arrears.
Khajahari Construction Sdn Bhd director Bemin Kannan said he was left “high and dry”, and thus could not pay his supplier, a quarry works company.
“60% of my money is stuck with Panzana while the 40% of the outstanding amount is with Turnpike Synergy Sdn Bhd,” he said, claiming Panzana owes his company RM6 million.
He added that many subcontractors have engaged in a long legal battle after the opening of DASH last November.
Stretching a total of 20.1km, DASH connects Puncak Perdana to Penchala. The new highway began construction in 2016 and started operating on October 14, 2022. – The Vibes, May 17, 2023
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