KUALA LUMPUR, Jan 22 (Bernama) -- The Transport Ministry plans to take legal action against the company which failed to deliver eight sets of secondhand Diesel Multiple Unit (DMU) trains from Spain within the time stipulated.

Transport Minister Datuk Seri Ong Tee Keat said the matter had been handed over to the ministry's legal advisor for study.

"When we terminated the agreement it was because the supplier had failed to fulfill its promise under the DMU delivery schedule," he told reporters after the launch of the "Institute on Tackling Economy Challenges" (I-TEC) at the Mines Resort Hotel, near here today.

Ong said he had the right to terminate the contract for the purchase of the eight sets of secondhand DMU trains from Spain costing RM64 million as the supplier had failed to deliver the trains within the time stipulated.

"I have to make a decision, a recommendation to terminate the contract and this had been agreed upon by the Finance Ministry and the purchase fund will not be wasted," he said.