Malaysian firm to fight $200m foreign bidding collusion claim by UAE

Malaysian company named in anti-competition lawsuit says it did nothing wrong and would fight the charges.

ABU DHABI // A Malaysian business said it would defend itself in court against a lawsuit alleging it withdrew at the last second from UAE-based projects in a scheme to help keep bids down for foreign companies.
Sime Darby Engineering (SDE) was sued in the Abu Dhabi Commercial Court this month by Emirates International Energy Services (Emas), which accuses the company of backing out of seven large-scale projects to help unnamed foreign companies win tenders. Emas is claiming nearly US$200 million (Dh734m) in payments and damages.
SDE had entered bids for gas and oil sector projects through Emas, which would then apply for the projects through Adnoc.
SDE said it had yet to be served a copy of the lawsuit, but dismissed the allegations as baseless.
"Based on recent confirmation from its solicitor in Dubai, Sime Darby Engineering confirms that such a suit exists, although it has yet to be served on the company. As such, SDE is not aware of the basis and grounds of the claim in the suit."
According to a 2006 contract, SDE said, Emas would identify suitable projects in which the Malaysian company could participate.
On August 13 last year, Emas sent a letter to SDE saying the withdrawals had caused losses and damages to Emas.
"In the event the suit contains claims based on the same grounds as Emas had asserted in their earlier letter, SDE intends to challenge this suit once it is served, and based on legal advice from its solicitors in Dubai will exercise all our rights within the full ambit of the law," SDE said.
"Based on legal advice from its solicitors in Dubai, SDE replied to Emas on September 8 2010, refuting the claims from Emas as having no basis whatsoever in law and that such claim itself is a ground to treat the agreement as being repudiated and a ground for termination."
By using Emas, which provides gas and oil services and is supported by the Khalifa Fund for Enterprise Development, SDE had an advantage over other bidders, Emas officials argued.
When SDE withdrew a bid, foreign businesses no longer had to compete with Emas, company executives said.
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