HOME-GROWN construction and property developer WZR Property Sdn Bhd has submitted a legal suit against the government of Maldives for breaching the contract pertaining to the development of its Ministry of Finance building in the reclaimed island of Hulhumalè.
WZR has also engaged the Malaysian Ministry of Foreign Affairs Malaysia (Wisma Putra), Ministry of International Trade and Industry (MITI) as well as the Prime Minister’s Office (PMO) to intercede and assist in facilitating the payment of US$22.8 mil (RM97.36 mil) to WZR from the Maldivian government.
“The adjudicator from the Asian International Arbitration Centre (AIAC) had ordered the Maldives state-owned Housing Development Corporation (HDC) to pay WZR for the work completed till July 2020,” commented WZR executive director Wan Nadzir Wan Mohamad.
“To date, we have yet to receive full payment of the award pronounced by the adjudicator from HDC. We have exhausted all channels of engagement with the Maldives government and have decided to file a lawsuit against them.”
According to Wan Nadzir, WZR is a reputable Class A Bumiputera contractor registered with Pusat Khidmat Kontraktor and a Construction Industry Development Board (CIDB) Grade 7 Licensee.
“We have delivered quality residential and commercial projects in Malaysia for over 20 years and this has enabled us to tap opportunities within our region,” explained Wan Nadzir.
“Unfortunately, the COVID-19 crisis has impacted the property and construction industry severely. The funds owed to us by the government of Maldives is critical to sustain our operations and facilitate our efforts towards nation building.”
In 2016, the Maldivian government signed a contract with WZR for the construction of a 25-storey office building in Maldives capital Malé. However, a decision was made to relocate the project to Hulhumalé.
As part of the process to seek payment from HDC for works done, WZR had in September 2019 asked the Asian International Arbitration Centre (AIAC) to appoint an adjudicator to settle the dispute in relation to the payment.
On July 5, the AIAC’s adjudicator John Wright ruled in favour of WZR, saying that the Malaysian company was entitled to seek payment from HDC for works done as the Malaysian firm had fulfilled its contractual obligations.
Among other things, the adjudicator ordered HDC to pay US$22.82 mil (or RM97.36 mil) to WZR within seven days of the July 5 decision.
As a result of the failure by the Maldivian government to comply with the adjudicator’s decision and its voluntary breach of contract for the said development, WZR has decided to file a claim against the former for the remedy of their losses and sufferance. – Aug 6, 2021
