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KUALA LUMPUR (Nov 30): TRC Synergy Bhd said the termination notice from MMC Gamuda KVMRT (PDP SSP) Sdn Bhd for a RM74.39 million contract related to works on the new Sungai Buloh-Serdang-Putrajaya mass rail transit line (MRT Line 2) was due to a misunderstanding.
In a filing with Bursa Malaysia yesterday, TRC said the termination was not due to default in contract by the company, but rather due to a prerogative right of MMC Gamuda as stipulated in the contract.
“Furthermore, under the contract, TRC will also be entitled to compensations due to the termination,” it added.
“The management was also of the opinion that the project’s contract value amounting to RM74 million is not too significant against the company’s total contract book order of RM2.6 billion. Therefore, the termination would not have a material impact on the earnings per share and net asset value of the company,” said TRC.
On Monday, TRC said it had received a notice of termination for works to relocate a craft museum, the Karyaneka office and National Heritage Department office to Bangunan Sultan Abdul Samad as part of the MRT Line 2 project.
This article first appeared in The Edge Financial Daily, on Nov 30, 2016. Subscribe to The Edge Financial Daily here.
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