Scomi serves arbitration notice on Prasarana

PETALING JAYA: Scomi Engineering Bhd’s wholly owned subsidiary Scomi Transit Projects Sdn Bhd (STP) has issued a notice of arbitration against Prasarana Malaysia Bhd over the alleged nullification of a third supplemental contract (TSC) with respect to the Kuala Lumpur monorail fleet expansion project.
STP is seeking a declaration that the TSC is valid and that the parties are obliged to refer all claims against each other to the independent consultant in accordance with the TSC, as well as claim for costs and other relief.
Scomi said the effect of the arbitration on its ongoing business performance is dependent on the outcome. 
The TSC was executed following an earlier dispute relating to the purported termination by Prasarana of the principal contract and to put in place a mechanism to ensure that the works under the principal contract can be finally completed without any delay.
Scomi Engineering shares rose half a sen to 26.5 sen on some 10,000 shares done, giving it a market capitalisation of RM90.65 million.