MCMC awarded RM15.3mil liquidated damages over delayed Sabah Jendela project
KUALA LUMPUR: The High Court in Shah Alam has ordered a contractor to pay RM15.32 million in liquidated damages to the Malaysian Communications and Multimedia Commission (MCMC) for failing to complete works under the National Digital Network (Jendela) project in Sabah within the agreed timeframe.
The High Court in Shah Alam has ordered contractor MajuBina Resources Sdn Bhd to pay RM15.32 million in liquidated damages to the Malaysian Communications and Multimedia Commission (MCMC) for delaying the completion of works under the National Digital Network (Jendela) project in Sabah. MCMC also awarded MajuBina RM5,000 in costs.
The court issued a summary judgment in favor of MCMC, granting them the substantial sum of RM15,324,832.31. The Malaysian Communications and Multimedia Commission (MCMC) filed a lawsuit in February to recover liquidated damages due to delays in the Jendela Phase 1 project, part of the Universal Service Provision (USP) initiative.
This initiative aims to expand communications services, particularly in rural and underserved areas. The court's decision emphasizes the importance of compliance with contractual obligations and agreed timelines to ensure successful project implementation and the distribution of digital connectivity benefits to the public, especially in rural areas.
The commission stated that the court's ruling highlights the significance of accountability in managing the country's communications infrastructure projects and reaffirmed its commitment to using USP funds responsibly to improve public access to quality communications services.
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