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 26 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 letter of award ref: EPCSB/KTB/LA/P105-WEBEST/B(10) dated 13 February 2023 (“LOA”) for Drainage Works of the Project.
b. On 31 Oct 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
|
823,175.33
|
30 November 2024(1)
|
Retention Sum
|
42,018.48(2)
|
11 December 2024(2)
|
TOTAL AMOUNT CLAIMED 2
|
865,193.81
|
|
Notes:
(1) As LOA does not specify a certification period for interim claims, the default payment term of 30 days from the date of submission applies, pursuant to Section 36 of CIPAA 2012.
(2) LOA does not contain mechanism specifying timeline for retention sum release, therefore, Section 36 of CIPAA 2012, default payment term of 30 days from certificate of practical completion (“CPC”) issuance applies for 1st moiety retention sum of RM42,018.48.
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 RM865,193.81 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 26 June 2025.