by PRIYA VASU / graphic by MZUKRI MOHAMAD
SALCON Bhd, MMC Corp Bhd and Ahmad Zaki Resources Bhd-owned joint-venture company, Salcon MMCB AZSB JV Sdn Bhd (SMAJV), has withdrawn its arbitration proceedings against Pengurusan Aset Air Bhd (PAAB).
In a filing to Bursa Malaysia last Friday, MMC Corp stated that SMAJV has been notified by its solicitors that its claim and PAAB’s counterclaims in respect of the arbitration proceedings were withdrawn respectively.
The arbitration commenced relating to the works performed by SMAJV in respect of the development of the Langat 2 Water Treatment Plant and Water Reticulation System in Selangor.
“The withdrawal of the arbitration proceedings is not expected to have any material effect on the earnings, net assets and gearing of MMC Group for the financial year ending Dec 31, 2021,” MMC noted.
According to a filing in Bursa Malaysia on Aug 26, 2020, SMAJV sought a claim of RM85 million which included loss and expense claims, claims for works done under variation orders, release of retention sum and unilateral deduction by PAAB on payments due to SMAJV.
PAAB in counterclaim dated Sept 25, 2020, sought RM63 million against SMAJV for alleged breaches relating to the works performed in the development of the Langat 2 Water Treatment Plant and Water Reticulation System in Selangor in response to arbitration notice.
SMAJV, owned at 36:34:30 basis by Salcon, MMC and Ahmad Zaki respectively, was awarded the RM993.9 million Langat 2 water treatment plant and water reticulation system contract in 2014.