Reference is made to the announcement by JAKS Resources Berhad (“JRB") dated 19 August 2022 and  29 December 2022 in relation to the above matter. The definitions and abbreviations in the said announcements shall apply herein.

The Board of JRB wishes to inform that its subsidiary, JAKS Sdn Bhd has on 10 January 2023 received the Originating Summons to enforce the Adjudication Decision against the members of JKJV, i.e. JAKS Sdn Bhd and KACC Construction Sdn Bhd. JKJV is currently in the midst of filling an application for stay and an application to set aside the Adjudication Decision dated 23 December 2022, in the Kuala Lumpur High Court soonest in order to further safeguard its interests.

As previously announced on 29 December 2022, prior to the filling of enforcement proceedings by TESB, JKJV has on 23 December 2022 issued and served a Notice of Arbitration to commence arbitration proceedings against TESB and  the reliefs sought by JKJV include:

(i)        A declaration that TESB’s self-determination of its employment is wrong and unlawful;

(ii)       General damages arising from the alleged wrongful termination and unlawful self-determination;

(iii)      Loss and damage amounting to RM11,773,250.00;

(iv)      Costs and disbursements;

(v)       Pre-award and post-award interest; and

(vi)      Other reliefs the learned arbitrator deems just and appropriate.

The solicitors for JKJV has advised that JKJV has strong merits in the above arbitration proceedings and JKJV intends to vigorously oppose TESB’s enforcement proceedings.

Further announcements on material developments in this matter will be made in due course.

This announcement is dated 12 January 2023.