Announcement On Status Of Contractual Dispute Between Telekom Malaysia And MEPS JV

05 September 2002

Type Announcement
Subject ANNOUNCEMENT ON STATUS OF CONTRACTUAL DISPUTE BETWEEN TELEKOM MALAYSIA AND MEPS JV

Contents :

By an Agreement dated 10 February 1998 made between Telekom Malaysia Berhad ("TM") and Tan Sri Mustapha Kamal Haji Abu Bakar, Eastborne Corporation Berhad, Projass Engineering Berhad and Shorefield Holdings Sdn Bhd (to be collectively referred to as "MEPS JV"), MEPS JV agreed to design, construct and complete the proposed Multimedia University Campus at Cyberjaya, Selangor Darul Ehsan.


Differences had arose between MEPS JV and TM which, amongst others include the completion of outstanding works, remedying of defects, retention of the cash performance guarantee, the deduction of liquidated damages for delay and the certification and payment of the retention money. This dispute has been referred to Jabatan Kerja Raja ("JKR") of which a decision was made on 27 June 2002. TM is currently in the process of appealing to JKR over the said decision.

To further protect TM's interest on the above matter, TM has filed an appeal for review of the decision by JKR in the High Court. The Court has yet to fix the hearing date for the said application.


Announcement Info

Company Name TELEKOM MALAYSIA BERHAD
Stock Name TELEKOM
Date Announced 5 Sept 2002
Category General Announcement
Reference No TM-020822-36616