KUALA LUMPUR: The High Court in Shah Alam has ordered a contractor to pay RM15.32 million in liquidated damages to the Malaysian Communications and Multimedia Commission (MCMC) for failing to complete works under the National Digital Network (Jendela) project in Sabah within the agreed timeframe.
The court also ordered MajuBina Resources Sdn Bhd to pay RM5,000 in costs to MCMC.
In a statement today, MCMC said the court had granted a summary judgment in its favour for RM15,324,832.31.
MCMC filed the lawsuit in February to recover liquidated damages arising from delays in carrying out works under Jendela Phase 1, which is part of the Universal Service Provision (USP) initiative.
The initiative aims to expand the coverage and accessibility of communications services, particularly in rural and underserved areas.
MCMC said all communications infrastructure projects funded through the USP fund must comply with contractual obligations and agreed timelines.
“Compliance with these requirements is essential to ensure projects are implemented smoothly and that the benefits of digital connectivity reach the public, particularly those in rural and underserved areas,” it said.
The commission said the court’s decision underscored the importance of accountability in implementing the country’s communications infrastructure projects.
It added that it would continue to ensure USP funds were used responsibly to improve public access to quality communications services.
In December 2024, Bernama reported that Sabah Chief Minister Datuk Seri Hajiji Noor had been informed by MCMC that only 217 of the 382 Jendela Phase 1 towers in Sabah, or 57 per cent, had been completed.
In a separate report that month, Bernama quoted Deputy Communications Minister Teo Nie Ching as saying that a Non-Compliance Notice had been issued on Oct 28, 2024, to all Phase 1 and Phase 2 Designated Universal Service Providers that had yet to complete their Jendela projects.
She had also warned that contractors who failed to meet the deadlines could face measures including liquidated damages.