Reference is made to our announcements dated 31 October 2018 and 22 November 2018. Unless otherwise stated, defined terms in this announcement shall carry the same meanings as defined in the previous announcements above.

Protasco Berhad (“Protasco”) wishes to announce that its wholly owned subsidiary, HCM Engineering Sdn Bhd (“HCM”) has on today filed a legal suit at the Kuala Lumpur High Court against Kuasatek (M) Sdn Bhd (“Kuasatek”) (“Legal Proceeding”).

HCM’s claim against Kuasatek is premised on breach of contract by Kuasatek pursuant to a Letter of Appointment for Mechanical and Electrical Works Packages (Contract No: HCM/P48-AFC/LA/C/16/V1(07) dated 15 March 2016, a work package under a project previously awarded to HCM known as “The Design And Built Contract For The Proposed Additional Of A 4 Storey Office Building With Basement Car Parking To The Existing Facilities On Lot No. 38627, Bukit Jalil, Mukim Petaling, Daerah Kuala Lumpur, Malaysia For Asian Football Confederation.” Kuasatek was the mechanical and electrical works sub-contractor for HCM.

The Legal Proceeding is to finally determine the liability of Kuasatek under the contract and for the refund of the Adjudicated Sum paid to Kuasatek pursuant to the Adjudication Decision dated 4.7.2018.

HCM’s claims against Kuasatek are as follows:

(a)        A declaration that the contract dated 13.5.2016 between the Plaintiff and the Defendant is for the sum of RM9,500,000.00;

(b)        A declaration that the Defendant has breached the contract dated 13.5.2016;

(c)        A declaration that the Plaintiff is allowed to set off the sum of RM288,204.76 as the costs to rectify the defectives works and /or work done on behalf;

(d)        A declaration that Plaintiff is allowed to set off the sum of RM930,000.00 as Liquidated Ascertained Damages;

(e)        A declaration that the Plaintiff is allowed to withhold the sum of RM475,000.00 as the performance bond until the issuance of the Certificate of Making Good Defects by Asian Football Confederation;

(f)        The Defendant shall pay the sum of RM12,889.25 to the Plaintiff forthwith;

(g)        The Defendant shall refund the sum of RM2,968,456.89 to the Plaintiff forthwith being the excess payment paid by the Plaintiff to the Defendant for work done;

(h)        The Defendant shall refund the sum of RM106,571.60 to the Plaintiff forthwith being the sum paid by the Plaintiff to the Defendant for legal costs, adjudication costs and expenses;

(i)         General damages to be assessed by this Honourable Court;

(j)         Interest at the rate of 5% p.a. on the amount in (f), (g), (h) and (i) above from the date of Judgment until date of full payment; and 

(k)        Costs.

Protasco wishes to state that the Legal Proceeding it has initiated has no significant immediate adverse impact on the current financial position of Protasco.