Shah Alam:The Shah Alam High Court has ruled in favor of the Malaysian Communications and Multimedia Commission (MCMC), granting a summary judgment that requires MajuBina Resources Sdn Bhd to pay RM15.32 million in liquidated damages. This judgment comes as a result of the company's failure to complete its contractual obligations under the National Digital Network (JENDELA) project in Sabah within the agreed timeframe.

According to BERNAMA News Agency, the RM15.32 million sum represents the liquidated damages incurred due to delays in the JENDELA 1 project. Additionally, the court has mandated that MajuBina Resources pay RM5,000 in legal costs to MCMC.

The MCMC initiated legal proceedings in February to recover these damages, which arose from delays in the implementation of the communications infrastructure project. This project forms part of the Universal Service Provision (USP) initiative, designed to enhance communications coverage and access, particularly in rural and underserved regions.

The commission emphasized the court's ruling as a reinforcement of the need for accountability in executing the country's communications infrastructure projects. MCMC highlighted that all projects funded through the USP must adhere to contractual obligations and timelines to ensure their successful implementation and to facilitate digital connectivity for communities in rural and underserved areas.

MCMC reiterated its commitment to ensuring that the USP fund is used responsibly to enhance public access to quality communications services.