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KUALA LUMPUR (Nov 16): Ikhmas Jaya Group Bhd's wholly-owned unit Ikhmas Jaya Sdn Bhd (IJSB), which had been awarded a contract to undertake earthworks and other works for the construction of seven blocks of serviced apartments, is being sued by the project owner ASM Development (KL) Sdn Bhd, for alleged breach of contract.
ASM Development also accuses IJSB of delaying completion of the works, and also claims the undertaken works were defective.
In a filing with Bursa Malaysia, Ikhmas Jaya said IJSB's services were terminated and that ASM Development had to employ another contractor to complete the works at a higher price tag.
It said ASM Development is claiming damages and costs, totalling RM13.33 million, from IJSB.
The project located in the district of Petaling in Kuala Lumpur, comprises a total of 4,214 units of apartments.
Ikhmas Jaya said it is assessing the financial and operational impact of the contract termination on the group, for its financial years ending Dec 31, 2019 (FY19) and Dec 31, 2020 (FY20).
Ikhmas Jaya's shares closed unchanged at 10 sen yesterday, valuing the group at RM58.84 million.
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