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WZR sues the Maldives for contract breach

KUALA LUMPUR: Construction and property developer WZR Property Sdn Bhd (WZR) has submitted a legal suit against the government of Maldives for breaching the contract on the development of the Ministry of Finance building in Hulhumalè, Maldives.

WZR has also engaged the Malaysian Ministry of Foreign Affairs Malaysia (Wisma Putra), Ministry of International Trade and Industry (MITI) as well as the Prime Minister's Office (PMO) to intercede and assist in facilitating the payment of US$22.8 million (RM97.36) to WZR from the Maldives government.

WZR executive director Wan Nadzir Wan Mohamad said the adjudicator from the Asian International Arbitration Centre (AIAC), ordered the Maldives state-owned Housing Development Corporation (HDC) to pay WZR for the work completed till July 2020.

"To date, we are yet to receive full payment of the award pronounced by the adjudicator from HDC.

"We have exhausted all channels of engagement with the Maldives Government and have decided to file a lawsuit against them," he said in a statement.

Wan Nadzir said WZR is a reputable Class A bumiputra contractor registered with Pusat Khidmat Kontraktor and a CIDB Grade 7 Licensee.

The company have delivered quality residential and commercial projects in Malaysia for over 20 years and this has enabled WZR to tap opportunities within the region.

"Unfortunately, the Covid-19 crisis has impacted the property and construction industry severely.

"The funds owed to us by the government of Maldives is critical to sustain our operations and facilitate our efforts towards nation-building," Wan Nadzir said.

In 2016, the government of Maldives signed a contract with WZR to construct a 25-storey office building in Maldives capital Malé.

However, a decision was made to relocate the project to the reclaimed island Hulhumalé.

As part of the process to seek payment from HDC for works done, WZR had in September 2019 asked the Asian International Arbitration Centre (AIAC) to appoint an adjudicator to settle the dispute concerning the payment.

On July 5, the AIAC's adjudicator, John Wright, ruled in favour of WZR, saying that the company was entitled to seek payment from HDC for works done as the WZR had fulfilled its contractual obligations.

Among other things, the adjudicator ordered HDC to pay US$22.82 million (RM97.36 million) to WZR within seven days of the July 5 decision.

As a result of the failure by the government of Maldives to comply with the adjudicator's decision and the voluntary breach of contract for the said development, WZR has decided to file a claim against the government of Maldives the remedy of their losses and sufferance.

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