Pursuant to Paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), the Company wishes to announce that its wholly-owned subsidiary, JETSON CONSTRUCTION SDN. BHD. (“JCSB”) was served with a ‘Notice of Adjudication’ (“NOA”) on 24 May 2022 and a ‘Notice to Director of AIAC to Register the Adjudication’ on 21 June 2022 by YDI SYNERGY SDN. BHD (“YDIS”) to commence adjudication proceedings against JCSB under the Construction Industry and Payment Adjudication Act 2012 (CIPAA) in relation to disputes arising from the Agreement and Conditions of PAM Contract 2018 (With Quantities) (“Agreement”) read together with a Letter of Award dated 20 March 2022 (“LOA”) for the construction of “CADANGAN PEMBANGUNAN INSTITUSI PENGAJIAN TINGGI SWASTA YANG MERANGKUMI 3 FASA IAITU:- (a) SEBAHAGIAN FASA 3: 2 TINGKAT TEMPAT LETAK KENDERAAR ARAS 1 DAN 2; (b) FASA 5: 12 TINGKAT BLOK K1 KEDIAMAN PELAJAR, 10 TINGKAT BLOK K2 KEDIAMAN PELAJAR; (c) FASA 6: 7 TINGKAT BLOCK C: BENGKEL & MAKMAL KEJURUTERAAN, BILIK KULIAH, TUTORIAL & PERBINCANGAN DAN DEWAN PAMERAN, DI ATAS LOT P.T. 13825, TAMAN TEKNOLOGI MALAYSIA, MUKIM PETALING, BANDARAYA KUALA LUMPUR, WILAYAH PERSEKUTUAN UNTUK TETUAN ASIA PACIFIC UNIVERSITY SDN BHD” (“Project”) seeking a sum of RM6,089,876.12. The LOA is to be read together with the Agreement (collectively referred to as the “Contract”).
JCSB had on 17 March 2020, accepted a LOA from Asia Pacific University, to undertake the construction and completion of the Package 2 main Building Works (Phase 3) for the proposed development of a private higher education institution comprises three (3) phases.
YDIS has raised a claim that there is allegedly an outstanding sum of RM6,089,876.12 due and payable by JCSB to YDIS for works done by YDIS under the Contract. In this respect, YDIS’ purported claims in the aforementioned NOA are similar to YDIS’ claims brought under a Notice of Arbitration dated 12 May 2022 as announced by the Company on 13 May 2022.
The Company’s position is that YDIS’ alleged claims under the aforementioned NOA are without merits and JCSB will vigorously defend its position accordingly.
The Company has sought professional legal opinion to the NOA from its solicitors and has instructed the said solicitors to take all necessary steps including possible filing of counterclaim and/or set-offs against YDIS.
The Company believes that the NOA and/or the adjudication proceedings are not expected to have material financial and operational impact on the Company for the financial year ending 31 December 2022. There shall be no impact on the Group’s operations.
None of the directors or major shareholders of the Company or persons connected to them has any interest, direct or indirect, in the adjudication proceedings. Further announcements on any material development of the matter will be made to Bursa Malaysia from time to time.
This announcement is dated 24 June 2022.