Sarawak Consolidated Industries Berhad (SCIB) and Awana JV Suria Saga Sdn Bhd (Awana) have resolved their dispute regarding the termination of a contract related to civil servant housing development works in Perak.
In a filing today, SCIB announced that its wholly-owned subsidiary, SCIB Properties Sdn Bhd (SCIBP), has entered into a comprehensive settlement cum appointment of contractor agreement with Awana.
The new agreement not only resolves previous contractual and financial disputes but also designates SCIBP as the exclusive main contractor for the Cadangan Skim Perumahan Projek Penjawat Awam (PPAM Muallim).
The settlement encompasses the termination of the engineering, procurement, construction, and commissioning (EPCC) contract, the acknowledgment of Awana's indebtedness to SCIBP, and the establishment of a repayment schedule for the outstanding debt.
Following termination of the EPCC contract on July 5, 2023, due to a lack of progress, SCIBP, which had initially accepted the letter of award for the EPCC project in 2021, proceeded to sign a settlement agreement with Awana on July 6, 2023.
The agreement mutually terminated the contract for the construction of 345 units of single-storey affordable terrace houses, 455 units of double-storey affordable terrace houses, and 28 units of double-storey shop lots in Muallim, Perak.
Under this agreement, a RM18.7 million advance made to Awana JV Suria Saga from SCIB Properties is now recognized as a debt owed to the company.
As per the settlement agreement dated July 6, 2023, Awana has acknowledged its indebtedness of RM18.7 million to SCIBP, which is to be repaid over 24 installments. Despite an initial installment payment of RM75,000.00 made on August 21, 2023, an outstanding balance of RM18.6 million remains to be settled.
