Kumpulan Jetson's unit receives arbitration notice related to RM88m job awarded five years ago

TheEdge Wed, Mar 13, 2024 06:52pm - 3 months View Original

KUALA LUMPUR (March 13): Kumpulan Jetson Bhd’s wholly owned unit received a notice of arbitration from its former client O&C Makok Isola Sdn Bhd (OCMI) in relation to an RM88.03 million job to build four blocks of serviced apartments in Jalan Yap Kwan Seng here.

In commencing the arbitration, OCMI is seeking to claim RM30.88 million, or a sum to be assessed by the Tribunal for the additional costs relating to the appointment of a replacement contractor to complete the works, said Kumpulan Jetson.

Other OCMI claims include liquidated damages, reimbursement of all and any over payment of works, advance payment under the contract, interest and cost and expenses of the arbitration.

Kumpulan Jetson’s wholly owned unit Jetson Construction Sdn Bhd (JCSB) was awarded the job in July 2018 to build the main building and external works of four blocks of apartment, with the contract sum of RM88.03 million.

However, OCMI issued a notice of termination of the contract four years later in September 2022.

Consequently, Kumpulan Jetson said JCSB has been engaging with OCMI on this dispute.

“JCSB disputes the inflated amount outlined in the notice and considers the commencement invalid, prompting the pursuit of legal advice for next steps, including potentially filing a counter-claim against OCMI,” said Kumpulan Jetson

“The company is seeking legal advice on the above matter and further announcement will be made on any material development,” it added.

In accordance to JCSB’s records, Kumpulan Jetson said there remains an outstanding amount owing by OCMI.

“JCSB has engaged legal representation to pursue counter-claims against OCMI,” said Kumpulan Jetson.

“JCSB is currently engaged in a thorough assessment of the case in collaboration with its solicitors. As such, until this assessment is complete and all relevant information is thoroughly reviewed, it would be premature to provide a definitive statement regarding the estimated potential liability,” it added.

Shares of Kumpulan Jetson closed unchanged at 25.5 sen, giving it a market capitalisation of RM68.33 million.

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