Vivocom clarifies Gateway Klang work stoppage

PETALING JAYA: Vivocom Intl Holdings Bhd yesterday clarified that it has temporarily halted work on the Gateway Klang project site but has not received any official letter of termination of the contract from China Railway Construction Corporation (CRCC).
“The temporary halt was to facilitate ongoing discussions between the project owner and CRCC. The temporary halt of the project is not expected to materially affect the earnings and net assets of Vivocom as Vivocom has other concurrent ongoing projects,” it said in a stock exchange filing in response to a report in a business weekly.
The report stated that work related to the RM474 million sub-contract for the commercial development was halted due to a delay in payments between project developer Lagenda Erajuta Sdn Bhd and main contractor CRCC Malaysia Bhd.
Vivocom said the group is awaiting further instruction from CRCC.
Vivocom’s share price fell 11.54%, closing at 11.5 sen yesterday with 54.44 million shares traded.