R&A Telco unit sues over non-repayment of RM1.027m

KUALA LUMPUR: R&A Telecommunication Group Bhd's unit has filed a suit against two companies for RM1.027mil after they failed to repay the advancement payments for a mini hydro power project in Kelantan.

It said on Friday  R&A Telecommunication Sdn Bhd had on Dec 9 filed a suit in the Shah Alam High Court Suit against JMT Kelantan Baru Sdn Bhd and JMT RE Maintenance Sdn Bhd.

The claim was pursuant to the writ of summons and statement of claim involving the sum of RM1.027mil; interest thereon at 5% per annum; costs; and any other relief deemed suitable and beneficial as the court may deem fit.

JMT Kelantan is the employer/principal of the project. It had awarded the contract for the construction to R&A Telco which was the engineering, procurement, construction and commissioning (EPCC) contractor.

R&A had unilaterally sought to withdraw the awarded contract which resulted in the mutual  termination of the contract on Nov 15, 2013.

As for JMT RE Maintenance, it was a sub-contractor the project.

The contract sum of the project is RM93.18mil and the  matter was fixed for case management at the Shah Alam High Court on Jan 11, 2017, at 9am.