Prolintas addresses allegations of non-payment of RM80 million to DASH highway sub-contractors –

There have been allegations that Prolintas, concessionaire of the just-opened Damansara-Shah Alam Elevated Expressway (DASH), has neglected to pay its sub-contractors, and the non-payment amount is to the tune of RM80 million. Now, Prolintas, which is also the company behind SUKE, has released a statement to explain its version of events.

First, the names of the parties involved. Projek Lintasan Damansara-Shah Alam Sdn Bhd (PLDASH) is the concession holder of the DASH. Turnpike Synergy Sdn Bhd is the main contractor appointed by PLDASH to construct and complete DASH. PLDASH dan Turnpike are both wholly owned subsidiaries of Prolintas.

Prolintas explains that construction of the DASH was divided into eight Work Package Contractors (WPC) via open tender. The WPC in turn appointed various sub-contractors and suppliers. Turnpike made payment via interim payment certificates to the WPC after certification from the lead engineering consultants and consultant quantity surveyors. All claims from the WPC will be analysed, checked and certified via a transparent process in line with the percentage of work done and according to contractual terms and conditions.

Prolintas says that Turnpike has discharged its duties and obligations as a responsible main contractor by making payment on all relevant claims that have been verified, certified, and mutually agreed between the WPC and the consultants.

In addition, Turnpike implemented additional initiatives to assist the WPC. In initiated payment within 30 days as opposed to 60 days as provided for in the contract, as well as direct payment to the sub-contractors upon consent by the WPC. Also, to ease the cashflow of the WPC, Turnpike released bi-monthly payments.

The concessionaire says that as DASH is now completed and is currently in the defect liability period, the final account will be issued as soon as all final claims of the WPC have been analysed and certified by Turnpike, the consultants and the WPC.

Click to enlarge map

“Any claims, allegations of non-payment or disputes will be addressed via the processes stipulated in the contract between all parties including resolution via arbitration between Turnpike and the WPC. In the circumstances, if the sub-contractors or any party alleges that there are unpaid sums due to them from the WPC, the said party should refer to the terms and conditions of the contract between the WPC and the sub-contractors for resolution of the same,” the statement read.

“Turnpike is committed to resolving any issues and disputes in accordance to the terms and conditions of the contract and the highest standards of corporate governance and transparency,” it added.

The DASH is a 20.1 km highway connecting Puncak Perdana to Penchala, where the now-famous spaghetti intersection is. There are 13 interchanges (Puncak Perdana, Alam Suria, Denai Alam, Kampung Melayu Subang, Pinggiran Subang, Subang 2, Subang Airport, RRIM (Kwasa Damansara), Surian, Seksyen 5 Kota Damansara, Sunway Damansara, Damansara Perdana and Penchala) and 90% of the route is above ground. It’s free from now till November 30. Full DASH facts and figures here.

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