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Gamuda Berhad (29579-T) • Annual Report 2012
39. Commitments
Capital commitments
Group
2012
2011
RM’000
RM’000
Approved and not contracted for:
Property, plant and equipment
-
42,090
Approved and contracted for:
Property, plant and equipment
170,436
-
Land
184,233
109,745
others
105
2,825
40. Material litigations
(i)
on 23 January 2006, a jointly controlled entity, MMC-Gamuda JV (“Joint Venture”) had terminated Wayss &
Freytag (Malaysia) Sdn. Bhd. (“W&F”) as the sub-contractor for the North Tunnel of the Stormwater Management
and Road Tunnel Project due to a breach of contract in accordance with the sub-contract dated 16 April 2003
(“Sub-Contract”).
Following the termination of the Sub-Contract and in accordance with the terms and conditions of the
Sub-Contract, both the Joint Venture and W&F submitted various claims against each other to the Dispute
Adjudication Board (“DAB”) for adjudication. The Joint Venture’s total claim against W&F was for a sum of
RM161,211,000. W&F’s total claim against the Joint Venture was for a sum of RM153,818,000.
According to the DAB’s decision on the various claims submitted, the Joint Venture is to pay W&F a net sum of
RM102,367,000. Under the terms of the Sub-Contract, any party who is dissatisfied with the decisions of the
DAB may issue a Notice of Dissatisfaction and require the matter to be referred to arbitration. The Joint Venture
had issued several Notices of Dissatisfaction against the DAB’s decisions.
on 17 December 2008, the Joint Venture issued a Notice of Arbitration to commence arbitration proceedings
against W&F for the sum of RM154,775,000 for breach of the Sub-Contract. In turn, W&F on 15 January 2009
issued a Notice of Arbitration to commence arbitration proceedings against the Joint Venture in respect of their
claims amounting to RM151,279,000.
A preliminary meeting between the Arbitral Tribunal members and the parties’ respective solicitors was held
on 17 September 2009 where the Arbitral Tribunal has directed that the merits hearing of the arbitration
proceedings commenced by both parties be heard over the period 4 July 2011 till 15 July 2011.
on 14 october 2010, W&F applied to the Arbitral Tribunal for its decision on 3 preliminary issues. The main
issue raised by W&F is whether the Joint Venture is obliged to comply with the DAB’s decisions by forthwith
paying to W&F the amount of RM100,540,372 (as awarded by the DAB) and interest.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012