1. INTRODUCTION
Pursuant to Paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Company wishes to announce that Transnational Builder Sdn. Bhd. (“TBSB”), a wholly-owned subsidiary of the Company, has on 23 June 2025 served an Adjudication Claim to Everprima Construction Sdn. Bhd. (“ECSB”) under Section 9 of Construction Industry Payment & Adjudication Act 2012 (“CIPAA 2012”) for outstanding sum of works done from the project known as “Proposed Construction & Completion on Lot 109, Mukim Balai Panjang, Daerah Melaka Tengah, Melaka for M/S Webest Sdn. Bhd. (“Project”)
2. PARTICULARS OF THE ADJUDICATION CLAIM
a. TBSB has been appointed by ECSB under a letter of award ref: EPCSB/KTB/LA/P104-WEBEST/B(10) dated 20 January 2024 (“LOA”) for total subcontract
for building of 114 units of single storey terrace houses of the Project.
b. On 31 October 2024, TBSB submitted the Final Progress Claim to ECSB for its works done.
c. Breakdown of the Adjudication Claim is as below:
Description
|
Amount (RM)
|
Due Dates
|
Final Progress Claim
|
6,725,076.63
|
12 February 2025(i)
|
Retention Sum
|
256,500.00(ii)
|
11 March 2025(ii)
|
TOTAL AMOUNT
|
6,981,576.63
|
|
Notes:
(i) An interim payment certificate should be issued 15 days from progressive claim dated 31 October 2024 and payment required to be released within
90 days from issuance of interim payment certificate.
(ii) Pursuant to LOA, 50% of the retention sum of RM513,000.00 is due for release within 90 days from issuance of certificate of practical
completion (“CPC”) dated 11 December 2024.
TBSB has engaged legal representation, MAC Construction Consultant Sdn. Bhd., to act for them in the adjudication process.
Based on the Notice of Adjudication to ECSB, TBSB is claiming amongst others, the following reliefs and remedies in relation to the Adjudication Claim: -
a. Payment of Adjudication Claim;
b. Interest on the adjudicated amount;
c. Cost for the preparation of the claim;
d. All other incidental costs;
e. Cost arising from and/or connection with the adjudication proceedings;
f. Such further and other reliefs that the Learned Adjudicator may deem fit.
3. CIRCUMSTANCES LEADING TO THE ADJUDICATION CLAIM
The issuance of the Adjudication Claim by TBSB to ECSB is based on the fact that the works have been fully completed by TBSB, as evidenced by the issuance of the CPC of the Project to ECSB on 11 December 2024, confirming that all works (including subcontract done by TBSB) were completed.
The Adjudication Claim of RM6,981,576.63 has been due and payable to TBSB by ECSB.
4. ESTIMATED POTENTIAL LIABILITY TO THE COMPANY AND ITS SUBSIDIARIES (“GROUP”) ARISING FROM THE ADJUDICATION CLAIM
Save for the disbursement cost for the Adjudication proceedings, the Group does not foresee any other potential liability to the Group, as TBSB is the claimant for the Adjudication Claim on works done.
5. POTENTIAL FINANCIAL AND OPERATIONAL IMPACT ON THE GROUP
Pending the outcome of the Adjudication Claim, the Group is not expected to have any immediate material financial impact on the Group for financial year ending 31 December 2025.
The Adjudication Claim is also not expected to have any operational impact on the Group.
Further announcements will be made to Bursa Securities as and when there is material development on the above matter.
This announcement is dated 23 June 2025.