PRESENT POINT POWER

Datuk Seri Samy Vellu briefing media after Opening the AGM of
Malaysia Hindu Sangam on 2nd July 2006

Gerbang Perdana Sdn Bhd name "flying high" in a towering crane

The contractor of the now aborted Johor scenic bridge Gerbang Perdana Sdn Bhd has now made a RM360 M compensation claim instead of the RM100 M it had asked earlier for works it had done in the project. But Works Minister Datuk Seri Samy Vellu said the government would not recklessly paid out whatever sums claimed by its contractors as all claims would be thoroughly investigated and supported by evidence.

Datuk Samy said that Gerbang Perdana Sdn Bhd has been given until 11th July 06 to submit documents and evidence relevant to the claims. He added he had given instructions to its officers to investigate the claim by Gerbang Perdana Sdn Bhd as well as works done on the site. It is unlikely that the claim would be approved.

Top & Below: Computer generated model of the abandoned "scenic" bridge

According to Samy Vellu, his ministry has decided on the quantum for compensation and he would made public the amount only after he had discussed it in the cabinet. He disclosed this to the media after opening the 29^th AGM of the Malaysia. Hindu Sangam.

“We have to do a complete investigation before we make payment to the contractor. This is a very serious matter and it will go for very high criticisms in the country, if we don’t do it properly. I have instructed the Pengarah of JKR ““Don’t be afraid of anybody. Carry on doing what you think is right only; report back to the minister, nobody else”

The CIQ Complex in the process of completion

It looks like this is “a breach of promise” compensation claim just like a girl who is promised marriage and when it is not honored, she can file an exagerrated compensation claim. It is unfortunate there are no law to charge the contractor for making a "false claim" just like you would be charged for making a "false Police report".

Samy Vellu officials can only argue against these triumphed up exhorbitant claims basing on the contract clauses and at the end of the day will most probably give in or being threathened to "settle in court"

An Updated : 03-07-2006 ; Media : Dow Jones ;Story By : N/A

following available from Malaysian Builder Seeks Compensation After Bridge Nixed

KUALA LUMPUR (AP)--A Malaysian construction contractor tasked with building a new bridge to Singapore is seeking 360 million ringgit ($100 million) in compensation from the government after the project was scrapped, a minister said Sunday.

However, the government has disputed the demand by Gerbang Perdana and will probe expenses that the company allegedly incurred before work on the bridge was halted in April, said Works Minister Samy Vellu.

"They have asked for all kinds of payment and I have informed the prime minister that we are not simply going to pay," Samy was quoted as saying by the national news agency, Bernama.

Gerbang Perdana was formed by consortium of development and investment groups in 1998 to specifically construct a new transport link that former leader Mahathir Mohamad had envisioned to replace the existing causeway between Malaysia's southern Johor state and Singapore.

But Mahathir's hand-picked successor, Abdullah Ahmad Badawi, announced in April that the Cabinet had decided to forego the project, saying Malaysians were unhappy with preconditions that Singapore had set for the bridge.

Plans to build the bridge had been a thorn in bilateral ties between the neighbors. But its cancellation has stirred brusque criticism by Mahathir, who retired in 2003, that his successor government is bungling up economic and national issues.

Samy said the investigation into Gerbang Perdana's demands would be similar to an anti-corruption probe, stressing that government might face public objections because the compensation involves taxpayers' money.

The company has a July 11 deadline to submit documents backing its claims, Samy added.

Gerbang Perdana earlier this year asked for MYR100 million ringgit in compensation. It was not immediately clear why it has since more than tripled its bill. Telephone calls to the company's office were not immediately answered Sunday.