Malaysian company sues government over new Finance Ministry building project

The planned 25-floor Finance Ministry building.

Malaysia’s WZR Property Sdn Bhd (WZR) has submitted a legal suit against the Government of Maldives claiming full payment of the remaining sum total owed to them in connection to the construction of the new Finance Ministry building at Hulhumale.

As per the Malaysian news outlet, New Straits Times, WZR is suing the Government to claim the full payment of the remaining sum total owed to them by Housing Development Corporation (HDC) in connection to the construction of a planned 25-story building at Hulhumale’ Phase 2 – allocated as the new Finance Ministry building.

WZR is claiming the non-payment of about USD 30 million (MVR 462 million).

The case was submitted for arbitration to the Asian Arbitration Center at the end of 2019 – following which the Government had been ordered to pay for the work carried out by WZR until the point of withdrawal from the project – that is till July 2020 – which the company claims to have not been paid.

They also noted to have tried on various occasions to engage with the Government in order to diplomatically solve the issue – which was unsuccessful.

WZR said that 60 percent of the piling work and 20 percent of the project was complete when it was stopped – for which they have not been paid at all.

WZR was contracted by the Government of Maldives during the administration of Former President Yameen Abdul Gayyoom in March of 2016 for the construction of a 25-story office complex in Male’ City – at the plot of land next to the current Finance Ministry building.

The project was relocated to Hulhumale’ Phase 2 in October 2016 – following which the project agreement was resigned with HDC.

Sun has been unable to get a statement from HDC regarding the matter.