KUALA LUMPUR: Sarawak Consolidated Industries Bhd’s (SCIB) plans to venture into Peninsular Malaysia has become a reality after securing a RM138.5 million project from Public Works Department in Terengganu.
SCIB today said its unit SCIB Industrialised Building System Sdn Bhd and partner Sasoakai Resources Sdn Bhd had received a letter of award (LOA) for the engineering, procurement, construction and commissioning contract.
SCIB Industrialised and Sasoakai had on February 5 entered into a joint venture on the maintenance of roadworks in Terengganu on a concession basis for the tenure of 2021-2026.
The RM138.5 million contract spans from August 1 this year to July 31, 2026.
“The contract secured is not expected to have any material effect on the net assets of SCIB and its group of companies for the financial year ending June 30, 2022,” the company said in a Bursa Malaysia filing.
“Any profits attributable to the group would be realised in stages over the tenure of the contract based on the progress of the project,” it added.
SCIB said the contract was subject to normal business risks such as construction risk, increase in cost due to escalation of material costs, availability of skilled manpower and materials as well as contractual terms including default provision and subcontractors’ performance.
“However, SCIB will put in place control measures and operational procedures to mitigate the risks,” it added.
Meanwhile, SCIB said it had received a notice dated July 23 from KPMG on its resignation as the company’s external auditor with immediate effect.
SCIB said it had been seeking legal advice on potential issues arising from KPMG’s independence as its auditor in light of the perception that the company shared similarities to Serba Dinamik Holdings Bhd which was in litigation with KPMG.
“Accordingly, concerns were raised by the company as to whether KPMG is able to continue acting independently in their capacity as auditors consonant with Rule 400.5 of the Malaysian Institute of Accountants By-Laws (on professional ethics and conduct),” SCIB noted in a separate Bursa filing.
“Following this, KPMG has in its notice stated that the views and opinions of the company on KPMG’s independence, coupled with the potential of a claim by the company, has compromised KPMG’s ability to continue to independently discharge their professional duties as auditor of the company,” it added.
At the close of midday trading today, SCIB was down 1.5 sen or 2.07 per cent to 71 sen with 4.6 million shares traded, valuing it at RM348 million.
Source: New Straits Times
