MATERIAL LITIGATION WZ Satu Berhad (the Company or WZ Satu) (I) Notice of Arbitration by WZS BinaRaya Sdn. Bhd. (formerly known as WZS KenKeong Sdn. Bhd.) (“WZS BinaRaya”) against Pembinaan Sahabatjaya Sdn. Bhd. (II) Notice of Adjudication under the Construction Industry Payment & Adjudication Act 2012 by WZS BinaRaya against Pembinaan Sahabatjaya Sdn. Bhd.

Reference Number  :  GA1-15102018-00081 

MATERIAL LITIGATION WZ Satu Berhad (the Company or WZ Satu) (I) Notice of Arbitration by WZS BinaRaya Sdn. Bhd. (formerly known as WZS KenKeong Sdn. Bhd.) (“WZS BinaRaya”) against Pembinaan Sahabatjaya Sdn. Bhd. (II) Notice of Adjudication under the Construction Industry Payment & Adjudication Act 2012 by WZS BinaRaya against Pembinaan Sahabatjaya Sdn. Bhd.

 

Company Name Stock Name Date Announced
WZ SATU BERHAD WZSATU 15 OCT 2018
WZ SATU BERHAD

 

 

 

Type Announcement
Subject MATERIAL LITIGATION
Description
WZ Satu Berhad (the Company or WZ Satu)
(I)	Notice of Arbitration by WZS BinaRaya Sdn. Bhd. (formerly known as WZS KenKeong Sdn. Bhd.) ("WZS BinaRaya") against Pembinaan Sahabatjaya Sdn. Bhd. 
(II)	Notice of Adjudication under the Construction Industry Payment & Adjudication Act 2012 by WZS BinaRaya against Pembinaan Sahabatjaya Sdn. Bhd.

(Unless otherwise stated, all definitions and terms used in this announcement shall have the same meaning as defined in the previous announcement dated 1 June 2018).

Further to the Company’s announcements made on 1 June 2018 and 29 June 2018, the Company wishes to announce that WZS BinaRaya had on 12 October 2018 evening, received the Adjudication Decision dated 12 October 2018 (“Decision”) issued by the Learned Adjudicator.

With this Decision, the Learned Adjudicator had decided the Adjudication Proceedings as follows: -

(i)   Pembinaan Sahabatjaya Sdn. Bhd. (“PSSB”) shall pay WZS BinaRaya the sum of RM3,409,760.08 only (“Adjudicated Amount”) in relation to the Adjudication Claim;

(ii)  PSSB shall pay the Adjudicated Amount on or before 11 November 2018 in the manner of a Banker’s Cheque or an equivalent financial instrument;

(iii) PSSB shall pay WZS BinaRaya’s interest at the rate of 5% per annum simple interest from 20 April 2018 until full payment of the Adjudicated Amount; and

(iv) PSSB shall bear the full costs of the adjudication amounting to RM53,148.86 only, which comprises of Adjudicator Fees, AIAC’s Administrative Fees, AIAC Registration Fee, AIAC appointment of Adjudicator Fees and WZS BinaRaya’s cost of reference.

The Learned Adjudicator had also dismissed PSSB’s Claims for the following: -

(1)  the sum of RM33,744,263.70 being the alleged Liquidated & Ascertained Damages (LAD) claimed for the purported late completion of the project; and

(2)  the amount of RM4,098,564.00 being the alleged claim for additional costs for the rental and preparation of the additional casting areas.

This announcement is dated 15 October 2018.