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- The group had issued a letter of withdrawal to Kencana Healthcare Sdn Bhd, and it was accepted on Thursday (Jan 26), said SCIB in a statement on Friday.
KUALA LUMPUR (Jan 27): Civil engineering group Sarawak Consolidated Industries Bhd (SCIB) said it has withdrawn from proposed engineering, procurement, construction and commissioning (EPCC) contracts involving a specialist hospital project in Johor Bahru.
The group had issued a letter of withdrawal to Kencana Healthcare Sdn Bhd, and it was accepted on Thursday (Jan 26), said SCIB in a statement on Friday.
SCIB said Kencana would reimburse the commitment fee totalling RM1.65 million that it had paid in two tranches under a settlement agreement dated Aug 30, 2021.
According to the group, Kencana had been unable to kick-start the project as initially scheduled due to its inability to secure the necessary operator leading to financing issues.
“[SCIB] is enforcing its rights under the 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,” said SCIB group managing director Rosland Othman.
SCIB said the withdrawal would not have any material effect on its gearing, earnings and net assets for the financial year ending 2023.
SCIB’s share price was unchanged at 16 sen in afternoon trading, giving the group a market capitalisation of RM93.44 million.
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