SCIB clarifies suit against developer Awana JV over scrapped Perak project still on

• The clarification came after the group announced via a bourse filing on Tuesday that it had filed a notice of discontinuance for the suit, which has been consolidated under a main suit.

KUALA LUMPUR (April 23): Sarawak Consolidated Industries Bhd (KL:SCIB) on Wednesday clarified that its subsidiary’s RM19.72 million recovery claim against Awana JV Suria Saga Sdn Bhd has not been withdrawn, but has instead been consolidated into a main suit to streamline litigation proceedings.

“SCIB affirms that the discontinuation of the separate action does not reflect a withdrawal or abandonment of the company’s claim. Rather, it represents a strategic legal approach to pursue the matter more effectively under a single consolidated suit,” SCIB said in a statement on Wednesday.

The clarification came after the group announced via a bourse filing on Tuesday that it had filed a notice of discontinuance for the suit, which has been consolidated under a main suit.

SCIB managing director Ku Chong Hong assured that the group remains fully committed to recovering RM19.72 million from Awana over the termination of the civil servants' housing project in Muallim, Perak.

“The consolidation of claims into a single legal action is a procedural refinement that enables us to pursue our rights more efficiently and with greater legal clarity. There has been no compromise to the substance or seriousness of our position,” Ku stressed in the Wednesday statement.

SCIB Properties Sdn Bhd, a wholly-owned unit of SCIB, had previously initiated legal action against Awana and MBSB Bank Bhd, which sought to remove SCIB as the corporate guarantor and to prevent further drawdowns, the company’s past filing showed.

The legal dispute stems from a RM162 million housing project under the Program Perumahan Penjawat Awam (PPAM), which was governed by a settlement cum appointment of contractor agreement between SCIB Properties and Awana in July 2024.

Awana was alleged to have failed to meet contractual conditions and conducted unauthorised drawdowns totalling RM1.65 million from an Islamic financing facility of RM63.9 million granted by MBSB, without SCIB’s consent.

Meanwhile, on April 10, the Shah Alam High Court granted SCIB an interlocutory injunction restraining Awana from further utilising the financing facility, until SCIB is removed as corporate guarantor or the suit is resolved.

Shares of SCIB settled up half a sen or 3.03% to 17 sen on Wednesday, valuing the industrialised building systems specialist at RM118.87 million.

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