Enra claims RM10.22m outstanding payment from Gemula

PETALING JAYA: Enra Group Bhd's wholly owned indirect subsidiary Enra Engineering And Fabrication Sdn Bhd (EEFab) has served a payment claim against Gemula Sdn Bhd for a total of RM10.22 million.
Served under Section 5 of the Construction Industry Payment and Adjudication Act 2012 (CIPAA), the payment claim is in relation to outstanding amounts due and payable by Gemula for works completed by EEFab under two letters of award, including additional/variation works ancillary to the subcontracts.
In a filing with Bursa Malaysia, Enra said it is necessary for EEFab to pursue the payment claims under CIPAA to best protect its interest.
"No provision for impairment loss is needed at this juncture and the cost of carrying out this action under CIPAA is not material in the current financial year ending March 31, 2018," it said, adding that there is no operational impact arising from the payment claim.
In 2016, Gemula appointed EEFab as a subcontractor for the construction of main garage for 8 x 8 vehicles and troop vehicles as well as infrastructure at Kem Batu 10, a military base in Kuantan, Pahang.
Gemula had issued two letters of award to appoint EEFab to undertake the iron structure works for the project, the provision of construction materials and completion of all works for the project.