11 contractors in a fix over 'unpaid RM70m'

Chris MaskiloneKOTA KINABALU: Eleven contractors on Wednesday alleged their claims totalling about RM70 million for work done since 2012 remain unpaid by Sabah Forest Industries (SFI).

Sipitang Chinese Chamber of Commerce and Industry President, Yeo Boun Kiat, said the situation had resulted in the contractors being in trouble with their suppliers, banks and put their workers in a quandary.

"Their suppliers are chasing them to settle their payment and they also have the banks breathing down their neck over loans. More importantly, the workers who need money to make ends meet," said Yeo in a press conference together with the contractors here.

He said the contractors came to see him as the President of the Sipitang Chinese Chamber of Commerce and Industry and air their complaints since they have no where else to go.

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"They don't know who else they can turn to," said Yeo, adding that he sympathised with them and had even accompanied them to discuss with the management of SFI on Tuesday as they were promised that payment would come end of October.

However, after waiting from morning until evening at the SFI administration meeting room, nobody from the SFI management came to see them.

The contractors claimed they were only told that SFI has no money yet to pay them.

Afterwards the contractors lodged a police report in Sipitang to facilitate further actions from them as well as protect them from any action in the future.

According to the contractors, based on the contracts between them and SFI, payment must be settled within 30 days of the date of invoices issued.

They said those who were persistent enough and come to the SFI office daily seeking payment might be able to get a little portion of the payment.

"But by paying only bit by bit, it has resulted in SFI now owing us a total of RM70 million," said the contractors.

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"We are not going against SFI but we just want to know the reason for them not wanting to see us," they said.

SFI management could not be contacted for comments.

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