KUALA LUMPUR (Feb 17): Two subcontractors involved in the construction of the Sungai Besi-Ulu Klang Elevated Expressway (SUKE) are suing a unit of Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), which is wholly owned by Permodalan Nasional Bhd (PNB), for over RM500 million. The subcontractors - Syarikat Muhibah Perniagaan dan Pembina an Sdn Bhd (SMPP) and Gabungan Strategik Sdn Bhd (GBG) - are suing Prolintas'' subsidiary Turnpike Synergy Sdn Bhd, and several senior Prolintas officials plus another subcontractor, Satunas Technology Sdn Bhd. Both SMPP and GBG allege that the defendants caused them losses and damaged their reputations during the project''s implementation. GBG is a wholly owned unit of public-listed Gabungan AQRS Bhd (KL: G-BGAQRS). Gabungan AQRS confirmed in a Bursa Malaysia announcement that the writ of summons was filed at the High Court of Kuala Lumpur. It said the writ and statement of claim are not expected to have any immediate material financial impact on the group for the financial year ending June 30,2025, pending the litigation''s outcome. According to a statement of claim filed by SMPP and GBG''s lawyers, Messrs Um Chee Wee Partnership, the suit also named Prolintas CEO Datuk Mohammad Azlan Abdullah, its chief operating officer Rostam SharifTami, and project manager Zairulnizam Rohani as defendants. SMPP and GBG said they were appointed subcontractors for the project''s bridge structure works (package SUKE-CAS), as well as mainline construction and associated works from chainage 4200 to 7800. The two subcontractors are partners who collaborated to complete the project. But Azlan and his representatives, Rostam and Zairulnizam, administered the CA3 project in a way that harmed SMPP and GBG, they claimed, leading to losses and damages. They alleged that Turnpike, Azlan, Rostam and/or Zairulnizam had: “conspired in orchestrating and carrying out the scheme to injure SMPP, causing SMPP to suffer losses and damages; delayed any review and/or unreasonably refused SMPP''s application(s) for an extension of time; under-certified the value of works carried out by SMPP; and deliberately refused to certify variation works carried out by SMPP”. While some of the variation works were “acknowledged” and paid by Turnpike, Turnpike did not revise the contract price to reflect these variations, they said. They also alleged that the defendants had appointed “step-in” contractors and accepted bribes from them. SMPP and GBG contend that Turnpike and/or Azlan''s administration of the CA3 Project had demonstrated a pattern of conduct designed to injure and cause loss and damage to them. Hence, SMPP and GBG are claiming RM501,278,960.58 in losses and damages. Last month, Rostam and Zairulnizam were charged with graft offences. Rostam pleaded not guilty to soliciting and accepting RM70,000 in bribes from Satunas Technology in exchange for approving work packages related to the SUKE project, while Zairulnizam claimed trial to a charge of accepting RM50,000 in bribes to help a company secure a highway construction project two years ago. According to Prolintas in a statement at the end of January, these two have been placed on leave of absence since July last year. Azlan, who is also a non-independent and non-executive director of Prolintas Managers Sdn Bhd - the manager of the Prolintas Infra Business Trust (KL: PLINTAS) - has relinquished the role on Feb 3, citing other personal commitments. Pro lintas Managers has distanced itself from the graft cases, clarifying that the two individuals charged are not related to the operations of the Prolintas Infra Business Trust. The MACC has also reportedly arrested five individuals who own a company and allegedly offered bribes related to highway projects. Prolintas holds a 51.02% stake in Prolintas Infra Business Trust. KUALA LUMPUR (Feb 17): Sarawak has received over RM96 billion in financial benefits from its oil and gas (O&G) industry up to 2024, according to Prime Minister Datuk Seri Anwar Ibrahim. This includes RM49 billion in cash payments and RM28.6 billion in dividends from the state government''s shareholding through the State Financial Secretary of Sarawak in Malaysia LNG Sdn Bhd (MLNG) as of December 2024. MLNG, a subsidiary of Petroliam Nasional Bhd (Petronas), operates one of the world''s largest liquefied natural gas (LNG) production facilities in Bintulu, Sarawak. Additionally, Sarawak received RM18.66 billion in sales tax as of the third quarter of last year, Anwar told the Dewan Rakyat while addressing petroleum activities in the state. He reiterated that Petronas, as the national authority over O& G, has fulfilled its role by ensuring equitable distribution to all states, including Sarawak. He noted that since 1976, Sarawak''s O&G industry has seen over RM280 KUALA LUMPUR (Feb 17): National oil company Petroliam Nasional Bhd (Petronas) will retain all its existing domestic and international contractual obligations in Sarawak, said Prime Minister Datuk Seri Anwar Ibrahim. This will remain the case even after Sarawak''s state-owned oil company, Petroleum Sarawak Bhd (Petros), assumes control of gas distribution in the state as the aggregator, effective from March 1. “This (Petros'') role still confirms the previous approval given to Petronas and its subsidiaries,” Anwar told the lower house of Parliament on Monday. Anwar did not say whether Petronas would be required to obtain a licence, or be subject to any additional procedures, to carry out petroleum operations in Sarawak. Last week, Minister in the Prime Minister''s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said revealed in a parliamentary reply that Petronas recognises Petros as the state''s gas aggregator, excluding liquefied natural gas. She added that Petronas and its subsidiaries are not required to obtain a licence, or comply with additional procedures, to conduct petroleum operations in Sarawak beyond those outlined in the Petroleum Development Act 1974 (PDA), and that an agreement had been reached between Sarawak Premier Tan Sri Abang Johari Tun Openg and Anwar on the matter. However, Abang Johari was reported as saying on Sunday that Azalina''s statement EjWS '' ASK Click to DGE EiWSfr 12 Things You Must Know About AStock Read also: Ho Hup Construction and Sunrise Model resolve legal dispute amicably as court strikes out petition.