Can the government avoid costly civil suits over KDVT2?

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Government Open to Negotiating Out-of-Court Settlement for KDVT2 Project Disputes

The Malaysian government is amenable to negotiating a "win-win solution" with former tender companies involved in the Klang Valley Double Tracking Phase 2 (KDVT2) project to resolve civil disputes amicably. This decision, made during a recent Cabinet meeting, signals an openness to an out-of-court settlement for civil cases the government is currently facing. The government terminated the tender with Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) on September 25, following recommendations from the attorney general, which subsequently led DMIA and its partner Lembaga Tabung Angkatan Tentera (LTAT) to file a civil suit against the government.
Readiness for Amicable Settlement

The government's stance is that it is always open to exploring amicable out-of-court settlements for civil cases it encounters. This approach was reiterated by Minister in the Prime Minister’s Department Datuk Takiyuddin Hassan, who stated that the Cabinet’s decision aligns with this established practice. He indicated that both the companies and the Transport Ministry are encouraged to endeavour to reach an agreement that benefits all parties involved.
Background of the Termination and Lawsuit

The termination of the tender with DMIA occurred on September 25, based on recommendations from the attorney general. This action prompted DMIA and its partner, Lembaga Tabung Angkatan Tentera (LTAT), to initiate legal proceedings by filing a civil suit against the government concerning the contract termination. The firm has reportedly been granted an interim injunction, though specific court dates are still pending determination.
Continuation of the KDVT2 Project

Despite the ongoing legal matters, the KDVT2 project is set to proceed. The Transport Minister, Datuk Seri Wee Ka Siong, previously announced that the project would continue following a fresh open tender process. This indicates that while the government seeks to resolve disputes with DMIA and LTAT, the progress of the infrastructure development remains a priority.

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Can the government avoid costly civil suits over KDVT2?

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