RM666mil Worth of Compensation Claims Approved

Tuesday October 25, 2011

From: http://thestar.com.my/news/story.asp?file=/2011/10/25/nation/9762908&sec=nation (accessed 25 October, 2011)

PETALING JAYA: A whopping RM2.38bil in compensation claims have been filed against 12 ministries and the Prime Minister’s Department over the last five years of which RM666.98mil have been approved, the Auditor-General’s Report stated.

The approved claims involved nine ministries of the RM666.98mil, 91.5% have been paid to the contractors involved including two claims made in 1997 and 2005.

Of the two claims, one was for the building of a school at a Felda settlement in Negri Sembilan (RM1.01mil) while the other was for the construction of the Durian Tunggal-Paya Rumput-Sungai Udang Melaka road worth RM4.56mil.

On advance payment to contractors, the report stated that the total figure had reduced from RM1.75bil in 2009 to RM1.28bil at the end of last year.

However, an audit analysis on the balance of payment to contractors for last year showed that RM62.2mil had yet to be collected from 23 companies although the projects had either been completed, abandoned or was partially completed.(emphasis added)

2 responses to “RM666mil Worth of Compensation Claims Approved

  1. It is not uncommon for claims of this character to be made against government and their agencies. After all Malaysia is a rapidly developing country. And if developed countries can still attract such claims against their governments it should not alarm anyone that these claims have been made against government.

    What is alarming and needs further analysis is the high level of settlement off these claims against government. Analysis should involve a study of the claims, the defences and the evidence put forward in support of the claims before settlement was reached.

    There is a tendency amongst law firms and lawyers including those who work for the respective ministries in government to work in collusion with each other to achieve what is termed crudely by the profession as a “runner”. A contrived and unmeritorious settlement with a percentage of the proceeds to be divided between lawyers and clients alike. (not the government in such instances). I am unwilling at this point to nominate a reference to a particular case which supports the contention although there is sufficient evidence out there for those who wish to research.

    Whats important is that government can be sued and be ordered to pay for loss an damages in civil suites. But there is no obligation or coercive force other than a moral one for government to pay when ordered to do so in such circumstances.

    You can obtain an order against government but not enforce it where government does not wish to be bound by the order. It has something to do with the constitutional protections afforded government and the question of sovereignty

  2. So why should sue government then if at the end of the day the aggrieved parties still in the vain?

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