The High Court will deliver on July 9 its decision in a company's RM480 million suit against the gov't & 2 others for breach of contract to upgrade the Royal Malaysian Air Force's Northtrop F5 Tiger fighter jets.
The company, in its suit filed in 2005, said that it signed an agreement with the defendants on Jan 11,2001, witnessed by the then prime minister, Tun Dr Mahathir Mohd, for refurbishing work of the fighter jet. According to the agreement, the defendants would paid Rm4.8 million a year for a maximum of 10 years, totalling 48 million, to the company on completion of the refurbishing work.
The agreement also stated that in the event of a breach of agreement by the company, the defendants must issue a written notice and the contract could be terminated after 30 days.
The company said it carried out refurbishment of the fighter jets with CAS Ltd, a company appointed as sub-contractor and completd the job and ended the services of CAS Ltd on jan 26,2002, after it found the sub-contractor's commitment to the upgrading work unsatisfactory.
However, the plaintiff claimed that the defendants held private negotiations with CAS Ltd to continue the job without its knowledge and it was barred from entering the RMAF base.
It also claimed that on May 21,2002, it was announced that CAS Ltd had obtained approval from the defendants to continue the work.
The company claimed that it received the contract termination letter from the defendants on Sept 6,2002, to rescind the agreement on grounds that the plaintiff did not produce the implementation bond within 14 days from the date the contract was signed and had failed to send a flyable technology demonstrator unit before Oct 15, 200, as stated in the agreement.
The company is demanding RM48 million compensation for termination of contract; Rm432 million for loss of future contract; exemplary damages; interests, costs and other reliefs deemed fit by the court.
The defendants, in their statement of defence, said the company had failed to perform and that the contract was given to another party.
source: New Sarawak Tribune. june 12, 2010
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Come July 9, The Judgement Day ! Don't forget to follow up.
