PETALING JAYA: Ekovest Bhd has commenced arbitration proceedings against Samling Resources Sdn Bhd (SRSB) via its wholly owned subsidiary Ekovest Construction Sdn Bhd (ECSB).
In its Bursa filing, Ekovest said the arbitration proceedings relate to the wrongful termination of joint venture and shareholders agreement dated Jan 6, 2017 entered by both parties to undertake the development and upgrading of the Pan Borneo Highway Phase 1 WPC-02 work package contract in Sarawak.
The group claimed that there was a misrepresentation by SRSB in order to induce ECSB into performing SRSB’s task and responsibilities relating to the project before the tender submission and procurement of the project from project delivery partner, Lebuhraya Borneo Utara Sdn Bhd (LBUSB).
Ekovest also alleged that SRSB had failed to make the necessary applications for the approval from the project delivery partner for the sub-contract of the project to its joint venture company, Samling – Ekovest JV Sdn Bhd.
The group added that SRSB failed to take any steps to compel LBUSB to consent to the sub-contract of the works to the JV company, which should not have been unreasonably withheld.”
Source: The Sun Daily