Malaysian company files for arbitration against Maldives
WZR Property Sdn Bhd group has filed for arbitration against the Maldivian government, over an alleged breach of contract signed during the former administration.
The Malaysian company is seeking a compensation of an additional USD30-40 million, on top of the USD29 million owed.
Citing the company’s chairman Datuk Sazmi Miah,Malay Mailsaid that that it filed the arbitration at the Asian International Arbitration Centre, which will then appoint professionals to handle the case, on Tuesday.
According to Sazmi, WZR Property and six other international companies were invited to submit proposals to develop a 25-storey office complex by the republic’s Ministry of Finance and Treasury. WZR Property won the nearly USD 123 million project and was awarded the contract on 1st February 2016, and an agreement was signed between both parties a month later.
A novation agreement was signed between WZR Property and the Housing Development Corporation (HDC) on 7th March 2017.
However, Sazmi toldMalay Mailthat the company is yet to receive “a single [amount] of the payment” despite completing 20 percent of the total work and 60 per cent of the pilings for the structure.
Noting that the agreement was signed during the previous administration, Sazmi said that the current one “is kind of reluctant to continue” with the project.