The Board of Directors of the Company wishes to announce that Citaglobal Energy Sdn. Bhd. (formerly known as WZS Misi Setia Sdn. Bhd.) (“Plaintiff”), a wholly-owned subsidiary of the Company had on 24 May 2023 served a Writ of Summons and Statement of Claim to UMD Energy Sdn Bhd Sdn. Bhd. (“UMD”) (“Defendant”) in the High Court of Kuala Lumpur via Suit No. WA-22NCC-299-05/2023 (“Writ”).

Background

The Plaintiff’s claim against the Defendant pertains to the alleged payment default in relation to the promise of the Defendant to pay the Plaintiff the sum of RM1,556,228.01 being the profit sharing due and payable to the Plaintiff following the closure and discontinuance of the project known as Provision of Engineering, Procurement, Constructions, Installation and Commissioning (EPCIC) of PM309 Gas Ledag Redev Segment 2 Development Project (“the project”).

The Plaintiff and the Defendant were executing the said project as a consortium. The project had been discontinued by the Client, Petronas Carigali Sdn. Bhd. Pursuant to the discontinuance of the project and payments received from the Client, the Defendant had promised to pay the Plaintiff vide a letter dated 14.11.2022 the sum of RM1,556,228.01 in 4 installments commencing 31 March 2023. The Defendant had failed to make payment.

The particulars of the claim under the Writ

Pursuant to the Writ, the Plaintiff has claimed from the Defendant the following:-
1. The sum of RM1,556,228.01; and
2. Interest at the rate of 5% per annum from the date of filing of the suit until full payment of the judgment sum.

Financial and Operational Impact on the Company  

The aforesaid Writ is not expected to have any material financial and operational impact on CITAGLOBAL for the financial year ending 31 December 2023.

Further announcements on the material development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 24 May 2023.