KUALA LUMPUR: Sarawak Consolidated Industries Bhd's (SCIB) engineering, procurement, construction, and commissioning (EPCC) project in Perak has lapsed.
In a filing with Bursa Malaysia Monday, the company said the project has lapsed due to unfulfillment of the required condition precedent under the settlement cum appointment of contractor agreement (SA) between the company and Awana JV Suria Saga Sdn Bhd.
Its wholly-owned subsidiary, SCIB Properties Sdn Bhd (SCIBP), has notified Awana of the lapse of both the SA and the contract via a letter dated Jan 3, 2025.
"On Jan 6, 2025, Awana conceded that the SA and the contract are no longer enforceable but they did not address the issues raised in the notice.
"As of Jan 10, 2025, SCIBP has not received any further responses from Awana," said SCIB.
According to the filing, the company is taking the necessary measures to protect SCIB's interests in mitigating the risks arising from the lapse of the SA and the contract and the long-overdue debts owed by the clients or the slow/non-movement of project progress.
"The company is seeking legal advice in relation to the recovery of the outstanding amount owed by Awana and the discharge of the corporate guarantor with MBSB Bank Bhd," it added.
On July 25, 2024, SCIB accepted a contract worth RM162 million for an EPCC project over 23 months in Mualim, Perak, via SCIBP by Awana.
The project, known as "Program Perumahan Penjawat Awam" (PPAM Mualim), involves the construction of both affordable housing and commercial units across two phases.