The Board of Directors of Menang wishes to announce that Menang Development Sdn. Bhd. (“MDSB”), a wholly owned subsidiary of the Company, had been served with a Writ of Summons No. WA-B52NCvC-439-11/2021 dated 5 November 2021 (“Writ”) filed by Moore Advent Tax Consultants Sdn. Bhd. (“MATC”), who seeks for the following orders:

1. the outstanding sum of RM533,600.00;
2. general damages for breach of contract;
3. pre-judgement interest pursuant to the Civil Law Act 1956 at the rate of 5% per annum from 6 August 2018, or such other date as the Court deems fit and proper, until the date of judgement;
4. post-judgement interest pursuant to the Civil Law Act 1956 at the rate of 5% per annum from the date of judgement until the date of full payment of the judgement sum;
5. costs; and
6. such further and/or other relief that the Court deems fit and appropriate.

The Board of Directors of Menang has deemed the Writ to be immaterial as the proceedings are not expected to have any material impact on the earnings, net assets or gearing of the Company for the financial year ending 30 June 2022. Hence, no announcement was made to the Bursa Malaysia Securities Berhad at that point of time.

Subsequently, MDSB had on 17 December 2021 filed a Counter Claim against MATC, Shun Leong Kwong (“Shun”) and Ong Chong Chee (“Ong”) (“Counter Claim”), seeking for the following orders:

1. a declaration that the engagement letter dated 26 January 2016 is invalid, null and void and of no effect;
2. further or in the alternative to the above a declaration that the engagement letter dated 26 January 2016 is not binding on MDSB;
3. a declaration that the alleged revised professional engagement between MDSB and MATC dated 21 September 2016 is invalid, null and void and of no effect;
4. further or in the alternative to the above, a declaration that the alleged revised professional engagement is not binding on MDSB;
5. a declaration that MDSB’s invoice no. INV06950 dated 5 October 2016 issued to MATC in the sum of RM849,272.00 is invalid, null and void and of no effect;
6. a declaration that MDSB’s invoice no. INV07636 dated 3 July 2017 issued to MATC in the sum of RM255,566.00 is invalid, null and void and of no effect;
7. a declaration that the invoices no. INV09120 dated 6 August 2018 issued by MATC to MDSB in the in the sum of RM593,600.00 is invalid, null and void and of no effect;
8. a declaration that MDSB does not owe any sums to MATC;
9. a declaration that Shun has acted in breach of his fiduciary duties owed towards MDSB;
10. a declaration that Ong and MATC have dishonestly assisted Shun in breach of his fiduciary duties owed to MDSB;
11. a declaration that MATC knowingly received the sum of RM1,164,838.00 which was paid out of MDSB or on behalf of MDSB when such sum was paid out in breach of Shun’s fiduciary duties owed to MDSB;
12. a declaration that MATC is holding the sum of RM1,164,838.00 as a constructive trustee for MDSB;
13. a declaration that Shun, Ong and MATC have conspired to injure MDSB;
14. judgement against Shun, Ong and MATC in the sum of RM1,164,838.00 on a joint and several basis;
15. interest on the sum of RM1,164,838.00 at the rate of 5% p.a. from the date of judgement until full and final settlement;
16. general damages to be assessed;
17. aggravated and/or punitive damages to be assessed;
18. costs; and
19. any other order and/or relief which the Court deems first and necessary.

On 4 January 2022, both Ong and Shun entered their respective appearance in the Counter Claim.

The case management for the Writ and the Counter Claim has been fixed on 11 January 2022 before the learned Sessions Court Judge, Puan Zawiyah binti Saad.

The Writ and the Counter Claim are not expected to have any material impact on the earnings, net assets or gearing of the Company for the financial year ending 30 June 2022.

The Company will make further announcements as and when there are material developments in respect of the aforesaid proceedings.

This announcement is dated 5 January 2022.