S P Setia sues former senior management and a former director for alleged breaches of duties

• Group’s former deputy president and chief operating officer Datuk Wong Tuck Wai: "To the best of my knowledge, I had discharged my duties as an officer of S P Setia conscientiously, diligently and responsibly with absolute due care at that point in time of the said acquisition which was approved by the board of directors after due processes in place at the company."

KUALA LUMPUR (Aug 27): Property developer S P Setia Bhd (KL:SPSETIA) says it has initiated legal action against its former senior management and a former director of the group, over alleged breaches of duties linked to the purchase of lands in Kota Kinabalu, Sabah, and the sale of units under the group’s Aeropod project.

The group’s former deputy president and chief operating officer Datuk Wong Tuck Wai, currently CEO of IJM Land Bhd; its former executive vice president Datuk Kow Choong Ming; and its former president cum CEO and director Datuk Khor Chap Jen were the first three defendants of the 11 defendants it named in the suit.

The other defendants were: Wilfred Yong Chen Leong; Alan Wong Siew Ong; Pristigo Properties Sdn Bhd; Asia Dream MM2H Sdn Bhd; Optimise Profit Sdn Bhd; Glorywise Century Sdn Bhd; Bigdeal Synergy Sdn Bhd; and Sinermaju Sdn Bhd, its bourse filing on Tuesday showed.

"The company and its subsidiaries have also brought this action against the abovenamed defendants for breaches of duties (1st to 3rd Defendants), dishonest assistance, conspiracy, deceit, and the breaches of Supplemental Agreement dated March 11, 2021 (which varied the terms of the Master Sale and Purchase Agreement dated July 20, 2017) by the other defendants." S P Setia said.

The writ and statement of claim was filed by S P Setia and its subsidiaries, namely Aeropod Sdn Bhd and Setia Bina Raya Sdn Bhd, at the High Court of Shah Alam.

In the suit, S P Setia is seeking a declaration that Aeropod is entitled to a ring-fenced sum of RM60.67 million that was retained by Aeropod as security towards the performance of Pristigo Properties’ obligations under the March 2021 supplemental agreement.

Further, S P Setia is seeking damages or equitable compensation for an additional sum of RM37.59 million, after deducting the ring-fenced money.

On top of that, the property developer is claiming for damages or equitable compensation for late payment interest of RM5.2 million up to Dec 31, 2020, and further interest from Jan 1, 2021 until the final settlement to be assessed by the court.

The suit has been fixed for case management on Sept 18, 2024.

'Complete surprise'

When contacted, Wong, who served his last role in S P Setia from 2016 to 2021, told The Edge that he had not been served with the suit and, as such, is not able to formally respond to the allegations.

However, he maintains that he had carried out his duty as the group’s deputy president and chief operating officer responsibly throughout his tenure.

"It has come as a complete surprise to me."

"To the best of my knowledge, I had discharged my duties as an officer of S P Setia conscientiously, diligently and responsibly with absolute due care at that point in time of the said acquisition which was approved by the board of directors after due processes in place at the company," said Wong in a text response.

Kow, in a separate text response, said he was "not fully aware" of the development surrounding the suit.

"During the course of my employment then, I had deligently conduct my work accordingly, and appropriately as required by the set SOPs (standard operating procedures)," Kow added.

The Edge has also reached out to Khor for comments.

S P Setia first introduced the plans for the Aeropod project, a mixed development anchored by the railway hub of Kota Kinabalu in Tanjung Aru, back in 2013. Spanning approximately 60 acres of land in the capital city of Sabah, Aeropod features boutique retail/offices; small office, versatile office (SOVO); retail lots, a shopping and entertainment mall, as well as high-rise residential towers and hotels.

The project also includes a provision for light rail transit (LRT), to improve the already available rail station in Tanjung Aru.

Aeropod was envisioned to be a 24/7 urban pod that embraces S P Setia’s development philosophy of LiveLearnWorkPlay, and was expected to be a tourist attraction because of its connectivity as a railway hub and proximity to the international airport.

Shares of S P Setia were up three sen or 2.42% to close at RM1.27 on Tuesday, for a market capitalisation of RM6.17 billion.

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