KUCHING: SCIB International (Labuan) Ltd (SCIBILL) has terminated an Indonesian road project worth RM55.59 million.
The wholly-owned subsidiary of Sarawak Consolidated Industries Bhd (SCIB) had issued a notice of termination to PT Cipta Multi Sarana (PTCMS) for the proposed engineering, procurement, construction and commissioning (EPCC) project involving earthworks for the PrabumulihMuara Enim tolled road located in Sumatra, Indonesia.
“SCIBILL, which accepted a letter of award for the EPCC project on Aug 18 2020 from PTCMS, has decided to take the necessary measures to protect its interest following the lack of progress in the project arising from uncertainties related to the COVID19 pandemic and in view of the initiatives being taken to review and update SCIB’s order book records.
“SCIBILL and PTCMS have mutually agreed to terminate the contract and unconditionally release and indefinitely discharge both parties from all claims, liens and obligations of every nature arising out of or in connection with the performance of the works and all amendments thereto, provided that the parties’ obligation under a settlement agreement are fulfilled,” SCIB said in a filing with Bursa Malaysia.
The parties shall enter into the agreement subsequent to the termination notice and the agreement shall reflect the parties/ mutual understanding.
“SCIBILL shall finalise the cut-off work-in progress acceptance report and last invoice as soon as possible and submit it to the client (PTCMS).
“The client acknowledges that there is no penalty/liquidated ascertained damages imposed by the client to SCIBILL,” said SCIB.
SCIB said as the outstanding amounts due and owing by the client have been fully impaired in the financial period ended June 30, 2021, the contract termination will not have any material effect on the gearing, earnings per share and net assets of the company for the financial period ending 2023.
The amount impaired shall be written back upon recovery of debts. SCIB group managing director Rosland Othman said the termination is in the best interests of the company as there has been no progress on the project.
He said on the part of PTCMS, it has acknowledged that there are no penalties or liquidated ascertained damages on SCIBILL.
Meanwhile, Sarawak Plantation Bhd (SPB) said the value of the recurrent related party transaction (RRPT) entered into by its subsidiary Sarawak Plantation Agriculture Development Sdn Bhd (SPAD) with its related party, Stonehead Sdn Bhd, has exceeded the estimated value by more than 10 per cent.
The actual value transacted between May 27, 2022 and Feb 11, 2023 was RM3.71 million against the estimated value of RM2.793 million stated in the circular to shareholders in relation to the proposed renewal of existing shareholders’ mandate and proposed new shareholders’ mandate for RRPT of a revenue or trading nature on April 21, 2022.
The proposed mandate was approved by the shareholders at the annual general meeting on May 27, 2022.
As such, SPB said the variation between the actual and estimated value was RM917,000 or 32.84 per cent above the estimated value.
On the reason for the variation, it said due to operational requirements, the quantity purchased exceeded the estimated quantity used to calculate the estimated value.
