EDGENTA

1.820

-0.13 (-6.7%)

MATERIAL LITIGATION UEM Edgenta Berhad ("UEM Edgenta" or the "Company") - Kuala Lumpur High Court Civil Suit No. WA-22C-33-04/2021 ("Civil Suit") commenced by Ahmad Zaki Sdn Bhd ("AZSB") against Edgenta PROPEL Berhad ("EPB")

UEM EDGENTA BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
UEM Edgenta Berhad ("UEM Edgenta" or the "Company")	
- Kuala Lumpur High Court Civil Suit No. WA-22C-33-04/2021 ("Civil Suit") commenced by Ahmad Zaki Sdn Bhd ("AZSB") against Edgenta PROPEL Berhad ("EPB")

1. Introduction

 

The Board of Directors of the Company wishes to announce that its subsidiary, EPB, had on 15 April 2021 received a Writ and Statement of Claim dated 12 April 2021 from Messrs. Harold & Lam Partnership, the solicitors acting for AZSB. 

 

2. Particulars of the Claim in the Statement of Claim

 

By way of a Letter of Award dated 5 August 2016, AZSB appointed EPB as a sub-contractor to carry out and complete the works in respect of the “Projek Mass Rapid Transit Laluan 2: Sungai Buloh-Serdang-Putrajaya (SSP) Package V202: Construction and Completion of Viaduct Guideway and other associated works from Persiaran Dagang to Jinjang, Subcontract: Protection & Relocation of Utilities (Relocation of Telecommunication Works) for the contract sum of RM87,000,000.00 excluding GST (Contract No: AZSB/V202/1/012/16/0)” (“Contract”). 

 

AZSB claims that EPB has breached the express and/or implied terms of the Contract:

 

a. EPB failed to have proper work planning, allocation of resources and manpower resulting in the failure to meet the Completion Date set out in the Contract;

b. EPB failed, refused and/or neglected to progress its scope of works timeously; 

c. EPB failed to proceed regularly and/or diligently with the works resulting in AZSB omitting part of the Contract works from EPB and award the same to a third-party replacement sub-contractor; and

d. EPB failed, refused and/or neglected to meet the Completion Date set out in the Contract.

 

AZSB is seeking the following reliefs from EPB:

 

a. The sum of RM23,751,000.00 or any other sum being the liquidated and ascertained damages due and payable from EPB as deemed appropriate by the Honourable Court;

b. The sum of RM1,848,227.33 or any other sum being the costs difference incurred by AZSB in engaging a third-party replacement sub-contractor as deemed appropriate by the Honourable Court;

c. The sum of RM28,300.00 or any other sum being the costs for absenteeism/non-conformances by EPB as deemed appropriate by the Honourable Court;

d. The sum of RM5,004,552.62 or any other sum being the consequential damages suffered by AZSB as deemed appropriate by the Honourable Court; and

e. The sum of RM250,227.63 or any other sum being the 5% administrative fee from the consequential damages suffered by AZSB as deemed appropriate by the Honourable Court.

 

 

3. Financial and Operational Impact on UEM Edgenta and its subsidiaries (the “Group”)

 

Save for the amount of damages claimed by AZSB together with cost, interest, and other financial relief, the suit is not expected to have other material financial and operational impact to the Group.

 

 

 

4. Proposed steps to be taken

 

The Civil Suit is fixed for case management on 27 April 2021 by way of e-Review before the High Court Deputy Registrar. 

 

EPB will robustly defend this Civil Suit and is currently seeking advice from its solicitors.  

 

The Company will make further announcements on any material developments of the matter from time to time. 

 

 

This announcement is dated 15 April 2021.






Announcement Info

Company Name UEM EDGENTA BERHAD
Stock Name EDGENTA
Date Announced 15 Apr 2021
Category General Announcement for PLC
Reference Number GA1-15042021-00085