Jepak Sued Over Rm1 65m Levy Linked To Sarawak Solar Project

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Jepak Holdings Sdn Bhd is being sued over the contractor’s alleged failure to pay an over RM1.65 million levy for the controversial Sarawak solar hybrid energy project.
The Construction Industry Development Board (CIDB), through law firm Messrs Hazura Yusoff & Partners, filed the Writ of Summons at the Kuala Lumpur High Court on Dec 2 last year.
The troubled project is the subject matter of the corruption trial of Rosmah Mansor, the wife of former prime minister Najib Abdul Razak.
The Education Ministry awarded Jepak Holdings the solar project, which was meant to benefit 369 rural schools in Sarawak at a cost of RM1.25 billion.
According to the court filing sighted by Malaysiakini today, CIDB alleged that Jepak had informed it about being awarded the project in November 2016.
The board claimed that when the company declared it was being awarded the project, then it must pay a levy of RM1,656,250 which took effect from Jun 12, 2019.
The plaintiff claimed that it is empowered by the CIDB Act 1994 to impose the levy for projects which have a contract value of RM500,000 and above.
“The failure, neglect, and/or negligence of the defendant to settle the payment of the levy in full or in part for the contract to the plaintiff, is clearly an offence under the Act.
“Despite the plaintiff having repeatedly demanded from the defendant to settle the payment of the levy, the defendant has and still failed, contravened, is negligent and/or has neglected to settle the payment of the levy,” CIDB alleged through the Statement of Claim.


The board claimed that despite its lawyers issuing a Letter of Demand dated Aug 16, 2019, to Jepak, the company still failed to settle the payment of the levy.
The plaintiff is seeking a court order for the defendant to pay the unpaid levy of RM1,656,250 as of Aug 16, 2019.
The board seeks an annual interest of five percent on the levy amount, to be calculated from the date of judgment until the date of full payment.
The plaintiff also seeks cost and any other relief deemed fit by the court.
According to an Affidavit of Service filed by CIDB's lawyers on Jan 12 this year, the legal action’s cause papers have been served on the company via registered post on Dec 8 last year.
The suit will come up for e-review (online) case management before the Kuala Lumpur High Court on Jan 18.
Jepak Holdings is also involved in a suit against the Education Ministry over the alleged wrongful termination of the project. - Mkini

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