Telekom seeks RM112,790 from R&A Telco for damaged cables

The lower net profit is due to foreign exchange losses on borrowings of RM96.5mil in the current period.

KUALA LUMPUR: Telekom Malaysia Bhd has filed a statement of claim against R&A Telecommunication Group Bhd for RM112,790 for damaging its cables in Sri Petaling, near Endah Parade in 2013.

R&A said on Tuesday its unit R&A Telecommunication Sdn Bhd (RATSB) had received a writ of summons and statement of claim from  Messrs. Zahir Jeya & Zainal, acting on behalf of Telekom.

In the statement of claim, Telekom is seeking the outstanding sum of RM112,790.30; interest at the rate of 5% per annum on the amount of RM112,790.30 calculated from Jan 9, 2014 until the date of full settlement; and cost.

On March 9, 2013, Telekom was informed that its underground trunking, copper cables and fibre optics at Jalan 3/149E Sri Petaling were damaged.

Telekom's investigation found out that RATSB and/or its agent and/or employees had started horizontal direct drilling works at the construction area and had damaged its cables.

The statement said Telekom was forced to bear a loss of RM112,790.30 for repairing the damages to the cables.

Telekom had sent a letter dated March 20, 2013 to RATSB about the losses and it demanded full compensation, following up up a demand for RM112,790.30 as compensation.

However, RATSB failed/refused to settle the outstanding payments or any part thereof.

Telekom's solicitors served a notice of demand dated March 10, 2014 to R&A demanding for the compensation.

“However, RATSB still failed, refused and/or neglected to comply with the notice of demand or any part thereof.

“The filing of the writ of summons and statement of claim was a result of RATSB failing to settle the said amount,” Telekom's statement of claim said.

Meanwhile, R&A said the financial and operational impact of the writ of summons and statement of claim on the group was minimal as RATSB has ceased operations since June 2015.

R&A said it was seeking the necessary legal advice to remedy this situation.