PUTRAJAYA, June 13 (Bernama) -- Integrated Marine Works Sdn Bhd's (IMW) dredging and reclamation concession was terminated due to breach of the terms of the agreement, said Transport Minister Anthony Loke.
He said at a press conference today that the termination of the concession agreement between the government, the federal port authority and IMW which was signed on May 30, 2022 had been agreed by the Cabinet on May 29, 2024.
Loke said the Ministry of Transport (MOT) had issued a default notice dated Jan 29 to the company with a three-month remedy period until April 29, 2024, but IMW failed to remedy the breach of the terms of the agreement.
Among the violations of the terms of the agreement was IMW changing shareholders without the government's permission. When the agreement was signed, IMW was fully owned by Inai Kiara Sdn Bhd.
“However, in July 2023, MOT was informed that Inai Kiara had already been wound up through a winding up order by the Shah Alam High Court dated April 11, 2023.
“Further investigation by MOT found that IMW's shareholders were changed from Inai Kiara to Inai Warisan without the government's permission.
“This means that IMW has violated one of the terms of the agreement where, based on the agreement, the company cannot change shareholders without the government's permission,” he said.
Loke said IMW had also failed to pay the concession fee for the year 2023 as stated in the concession agreement.
“Finally, a termination notice was issued to IMW on June 11, 2024.
“The MOT will not appoint a new concession company following this termination,” he said.
He said a new policy will be enacted to encourage the growth of the dredging and reclamation industry among more competitive local companies for the development of the country's ports.
“It should be emphasised that most of the dredging and reclamation projects at federal ports are financed by the respective port operators,” he said.
-- BERNAMA
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