SCIB WITHDRAWS FROM SPECIALIST HOSPITAL PROJECT IN JOHOR BAHRU
KUALA LUMPUR, Jan 27 (Bernama) -- Civil engineering specialist Sarawak Consolidated Industries Bhd (SCIB) has issued a letter of withdrawal to Kencana Healthcare Sdn Bhd (KHSB) for contracts involving a specialist hospital project in Johor Bahru.
SCIB Group managing director Rosland Othman said the company is enforcing its rights under the proposed engineering, procurement, construction and commissioning (EPCC) contracts and taking the necessary measures to protect SCIB’s interests in mitigating the risks arising from the long delay or non-movement of project progress due to the uncertainties and inability to secure the necessary operator for the project.
“Additionally, this decision was made due to reviewing and updating our order book records to reflect the current situation,” he said in a statement today.
SCIB said that as part of the withdrawal from the project, KHSB will reimburse, under a settlement agreement, the commitment fee amounting to RM1.65 million that SCIB had paid out in two tranches.
It said the withdrawal from the contracts will not have any material effect on the gearing, earnings per share and net assets of the company for the financial year ending June 30, 2023.
SCIB had accepted a letter of award from KHSB dated Aug 13, 2021, for EPCC contracts involving the capital equipment procurement as well as the leasing concession for the procurement, supply, installation, testing and commissioning of medical equipment.
SCIB and KHSB have mutually agreed to the withdrawal.
-- BERNAMA
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