21 February 2019, Kajang, Selangor, Malaysia - Suspected graft and corruption-ridden JKR contractor Protasco Bhd is never short of turbulance and legal issues, with latest dispute between its wholly-owned subsidiary, HCM Engineering Sdn Bhd (“HCM”) and Southkey City Sdn Bhd ("SCSB") ended up in the court.
SCSB is the joint venture partner for IGB Corp in the billion Ringgit Mid Valley Southkey Megamall (MVSM) Johor Bahru project.
MVSM is a JV development between IGB Corp and Southkey City Sdn Bhd to build one of Johor's mixed integrated project Southkey which comprises a retail mail, three hotels, serviced apartment blocks and four office blocks. The 32.5-acre joint venture development, to be undertaken by JV company Southkey Megamall Sdn Bhd, will be a blend of Mid Valley Megamall and The Gardens.
The Star newspaper on 28 Oct 2016 reported that IGB is raising RM1bil to part finance one of Johor's biggest malls. (source https://www.thestar.com.my/business/business-news/2016/10/28/igb-raising-rm1bil-to-part-finance-johor-mall/ )
HCM ONCE AGAIN IN THE LIMELIGHT OF LEGAL DISPUTE.
Protasco Bhd today announced in Bursa Malaysia it subsidiary HCM Engineering Sdn Bhd had filed a Notice of Adjudication under Section 8 of the Construction Industry Payment Adjudication Act 2012 (CIPAA) with the Asian International Arbitration Centre (“AIAC”) Kuala Lumpur to commence adjudication proceedings against Southkey City Sdn Bhd (“SCSB”), the developer of a property development project known as Southkey City, situated at Johor Bahru, Johor Darul Takzim.
The adjudication proceedings were commenced to seek resolution on contractual disputes covering HCM’s claims from SCSB for the principal amount of RM10,423,964.55 for construction works done and due to non-payment by SCSB. HCM is also claiming for late payment interest and cost, the amount of which will be determined at a later stage.
The claims were in relation to a Letter of Acceptance of Offer dated 3rd December 2015, wherein SCSB engaged HCM as the Main Contractor for the Construction, Completion, Testing and Handover of Road and Drainage Phase 1 (Package 1A) for a project known as “Cadangan Membina Dan Menyiapkan Kerja-Kerja Infrastruktur Bagi Pembangunan Bercampur Di Atas Lot PTD 14853 (Lot Lama), Mukim Plentong, Johor Bahru, Johor Darul Takzim Untuk Tetuan Southkey City Sdn Bhd” for a contract sum of RM7,041,900.00.
HCM VS MENUJU ASAS GRAFT PROBE.
Earlier on 16 Jan 2019, MACC probe on Azeez's RM842m road contract involvement raise eye brows when Menuju Asas Sdn Bhd was named as prime suspect of the suspected corruption. Menuju Asas Sdn Bhd and Protasco Bhd subsidiary HCM Engineering Sdn Bhd was dealing with the road projects during material time, which later ended up with lawsuit as per SUIT NO. 22-1558-2010 Menuju Asas Sdn Bhd -v- HCM Engineering Sdn Bhd AND SUIT NO. 22-1559-2010 Menuju Asas Sdn Bhd, Mohd Redzuan Mohanan Abdullah (T/A Menuju Asas Enterprise), Mohd Redzuan Mohanan Abdullah -v- HCM Engineering Sdn Bhd.
Protasco Bhd current lawsuit on the Johor project once again shows the Protasco reckless management is incapable of handling business dealings in a diplomatic way. Further more, Protasco management should be under probe by relevant authorities as of today, leaving the company with conflict focus rather than business focus.
Despite the business dispute, market expect more similar cases may surface and further be exposed soon.
Biz Report
https://www.youtube.com/watch?v=Ur5O_4e7Ejc
https://sg.news.yahoo.com/brief-protasco-says-unit-commences-094331819.html
https://klse.i3investor.com/blogs/criminalbusiness/194769.jsp
