Zin: Government can act only after Narajaya suit is resolved

Tuesday May 13, 2008

THE Federal Government has to wait for a court decision on a lawsuit filed by developer Narajaya Sdn Bhd against Cheras-Kajang Highway concessionaire Grand Saga and the Malaysian Highway Authority (LLM) in 2007 before negotiations could resume on the use of the access road.

Works Minister Datuk Mohd Zin Mohamed said no action could be taken by the federal government for fear of subjudice.

“The Government has held a series of meetings between Bandar Mahkota Cheras residents and the concessionaire to resolve the matter over the access road.

“Under the terms of the agreement signed between the federal government and the concessionaire in 1995, any financial loss due to the leakage of traffic volume from the toll highway will have to be borne by us,” he told Cheras MP Tan Kok Wai during a question and answer session in Parliament yesterday.

Zin said the Government was sympathetic to the plight of around 37,000 residents in Bandar Mahkota, who had dismantled the barricades installed by Grand Saga barring them use of a road allowing them a shorter and toll-free route into their housing areas.

“We understand why the residents have resorted to such drastic action. The main toll road is also highly congested due to the high traffic volume of lorries and cars,” he said.

The standoff had turned ugly on Thursday night when police used tear gas and water cannons to disperse a crowd comprising residents who were trying to dismantle the latest barricade put up by Grand Saga.

To a supplementary question by Tan, Zin said although the Survey and Mapping Department report showed that the land the barricade was on belonged to the Selangor state government, there was still the question of who would bear the financial loss incurred by Grand Saga.