PETALING JAYA: Sarawak Consolidated Industries Bhd (SCIB) has announced today that it has initiated legal proceedings against Dynamic Prestige Consultancy Sdn Bhd over an unfulfilled refund of RM14 million owed by the latter.
The figure represented an initial payment made in expectation of a forthcoming strategic business collaboration in the engineering, procurement, construction and commissioning (EPCC) sector.
According to the terms of the agreement, Dynamic Prestige was obligated to propose a redeemable convertible preference shares (RCPS) scheme within its organisation.
SCIB eventually decided not to proceed with the RCPS arrangement and had requested for the agreed-upon refund.
Dynamic Prestige, however, has failed to refund SCIB until now.
SCIB managing director Ku Chong Hong said that the initiation of the legal process is a necessary step to protect the company’s interests and uphold its financial integrity.
“We have always operated with full adherence to our contractual obligations and expect the same level of commitment from our partners.
“We remain confident in our legal position and are committed to ensuring the best outcome for our shareholders and stakeholders,” he said.
An investment holding company, Main Market-listed SCIB manufactures and sells concrete products for use in the construction and infrastructure sectors primarily in Malaysia.
On March 28, its wholly-owned unit SCIB Industrialised Building System Sdn Bhd secured a RM16.8 million EPCC subcontract for the construction of a school in Kota Samarahan, Sarawak.
The project, which was awarded by main contractor Majestika Sdn Bhd, is expected to be completed in 14 months.
As at 3.58pm, its share price was down 0.5 sen or 1.14% to 44 sen, giving it a market capitalisation of RM275.34 million.