KUALA LUMPUR: Sarawak Consolidated Industries Bhd
(SCIB) has withdrawn from engineering, procurement, construction and commissioning (EPCC) contracts involving Kencana Healthare Sdn Bhd's specialist hospital project located in Johor Bahru.
SCIB said Kencana Healthcare had accepted its withdrawal from the proposed contracts awarded on Aug 13, 2021, which involve capital equipment procurement as well as the leasing concession for the procurement, supply, installation, testing and commissioning of medical equipment.
“The company is enforcing its rights under the contracts and taking the necessary measures to protect SCIB’s interests in mitigating the risks arising from the long delay or non-movement of project progress due to the uncertainties and inability to secure the necessary operator for the project.
"Additionally, this decision was made due to reviewing and updating our order book records to reflect the current situation,” said SCIB group managing director Rosland Othman in a statement.
SCIB said Kencana Healthcare will reimburse under a settlement agreement, the commitment fee amounting to RM1.65mil that SCIB had paid out in two tranches.
It added that the withdrawal from the contracts will not have any material effect on the gearing, earnings per share and net assets of the company for the financial year ending June 30, 2023.
