Samy Vellu’s ACTION -Terminate Perembun Consortium contract – FAILURE in upgrading the Gemas-Ayer Hitam road in Johor from 2-lanes to 4 lanes

Datuk Samy Vellu briefing newsmen on the action taken

The abandoned - partial completion of the Gemas-Ayer Hitam upgrade from 2-lane to 4 lane

Under the 9MP, a new ruling has been implemented since May 05 “to take swift and stern action against contractors who default on their contracts” And Perembun Consortium appears to be the first victim. After the excellence award presentation in his Ministry, he told newsmen that he had directed the PWD to sent a notice of termination to Perembun Consortium.

He said “ They just left the job there. They never do it. And they never pay the sub-contractor. They create a lot of problems for us” He had received many SMS messages regarding this project and the contractor.

The following is the Bernama report on this problem.

Works Ministry Takes Action Against Contractor, June 22, 2006 12:56 PM

KUALA LUMPUR, (Bernama) -- Works Minister Datuk Seri S. Samy Vellu Thursday invoked his ministry's new ruling by ordering action against a contractor for failing to abide by the contract terms of upgrading the Gemas-Ayer Hitam road in Johor.

"The time for mere statements and warnings are over. Now, we start taking action," he told reporters after presenting excellent service awards to his ministry's staff, here.

The new ruling which, among others, calls for swift and stern action against contractors who default on their contracts, is effective since last May with the implementation of the Ninth Malaysia Plan (9MP).

The ruling includes terminating the contracts of companies which fail to start or complete their projects on time and according to specifications.

The minister said he would seek the Treasury's permission to take action against other contractors as and when the situation warranted.

On the action against the contractor for the Gemas-Ayer Hitam road project, Samy Vellu said he had directed the Public Works Department (PWD) to send a notice of termination to Perembun Consortium.

"This contractor will be the first to face action since the implementation of the new ruling under the 9MP," Samy Vellu said.

The joint-venture project by Perembun and another company involves upgrading of the road from two lanes to four lanes.

However, ministry officials said the other company had not shirked its responsibilities, and was expected to be allowed to complete the project by this year.

Samy Vellu said he had received complaints from the public through the Short Messaging Service (SMS) on the project and the contractor.

"I immediately sent the PWD director of roads to personally inspect the project and report back to me which he did", Samy Vellu said, adding that after perusing the report, he ordered action against the contractor.

The minister also said he had directed the district engineers to immediately take action against contractors, whether big or small, if they flouted the contracts.

Samy Vellu said the PWD would no longer tolerate non-substantiated excuses for delays of projects.

"My ministry has been given a huge responsibility by the Prime Minister and the government, and we intend to carry it out," he added.

The incomplete Highway upgrade - Gemas-Ayer Hitam

The abandoned section of the Gemas-Ayer Hitam upgrade - no payment to the sub-contractor so no work done and we have the classical delay in the implementation of a project - Malaysia Bolih

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