KUALA LUMPUR – A legal dispute between Damansara-Shah Alam Elevated Expressway (DASH) turnkey contractor Turnpike Synergy Sdn Bhd and main contractor Panzana Enterprise Sdn Bhd may leave the former’s subcontractors high and dry to the tune of RM100 million.
Melima Consortium is a group of four subcontractors who, along with their suppliers, workers and own subcontractors, have yet to be paid the amount following a legal fallout.
Construction works by Melima in DASH’s CA4 package were brought to a halt when Turnpike Synergy, a member of the Prolintas Group of Companies, unilaterally terminated its contract with Panzana.
Melima has appointed Thomas Philip Advocates and Solicitors as a final resort, seeking an immediate resolution to the issue of unpaid claims for finished work following several unsuccessful attempts to collect payment.
Thomas Philip founder and managing director Mathew Thomas Philip said his clients have been left high and dry since March despite having honoured their end of the contract, and that the Covid-19 pandemic has made things worse.
“The fact that this is happening as we all face an unprecedented economic and social hardship resulting from the pandemic compounds the already unfair situation my clients are facing.
“We call on all parties to recognise the economic and emotional duress being caused not only to Melima, but also to the many businesses, workers and families impacted by this dispute.
“Someone has to be accountable for this unacceptable situation.”
Melima representative Alex Toong said the subcontractors in question have been trying to engage with Panzana and Turnpike Synergy to reach an agreement on the outstanding sum.
Their efforts include the presentation of a proposal to salvage the appointment, which would see Melima completing the construction of its portion of the project within six months.
Toong said Melima was brought in to “rescue” parts of the CA4 package following disputes between Panzana and its previous subcontractors.
“At that time, there was zero superstructure on the ground. Over the last two years, we have poured our financial resources, blood and sweat into completing 3.6km of the 4km elevated structure.
“We have executed our scope of work in a timely manner and submitted progress claims that were verified by the consultants overseeing our works.
“However, we have not been paid as promised, and our appeals highlighting that we, too, need to pay our employees, suppliers and financiers have failed to get a response.
“With about RM100 million due to us, we are in dire straits.”
He said Melima’s portion of the works in the CA4 package is 90% completed, and that the company can finish the project in six months.
“We are prepared to help Turnpike Synergy complete the whole structure or finish partially completed parts, but we have not received any reply from Turnpike Synergy on our proposals.
“In fact, it appears that Turnpike Synergy has appointed yet another contractor to take over our works.”
Melima has been pursuing a civil engagement with Turnpike Synergy to find a solution that benefits all those involved, including consortium members, hired third parties, and thousands of Malaysians who would get access to DASH. – The Vibes, July 5, 2021
