Kumpulan Jetson’s RM919 million construction job terminated

PETALING JAYA: Kumpulan Jetson Bhd (KJB) has received a notification from MCC Overseas (M) Sdn Bhd to rescind the award of a RM919 million sub-contract to its wholly owned subsidiary Jetson Construction Sdn Bhd (JCSB) in relation to main building works for a mixed development project at Jalan Conlay, Kuala Lumpur.

KJB told Bursa Malaysia today that the termination is on the basis that there was an alleged misrepresentation or non-disclosure of a certain matter - one of its substantial shareholders is a director of a third party consultant to the employer of the project.

However, KJB said MCC has not given an opportunity to JSCB to respond prior to the purported unilateral rescission and JCSB denies any misrepresentation or non-disclosure or wrongdoing giving rise to such rescission.

"JCSB believes that MCC has repudiated and wrongfully rescinded the said letter of award/sub-contract. JCSB is seeking legal advice on this matter and will take appropriate action in due course," it added.

At 12.30pm, KJB shares were down by one sen to 42 sen, giving it a market capitalisation of RM84.83 million. A total of 1.5 million shares were traded.