Zecon obtains injunction to restrain RM24.75m guarantee payout to JKR

PETALING JAYA: Zecon Bhd has obtained an injunction from the Kuala Lumpur High Court to restrain the Public Works Department (JKR) from making a claim or receiving the RM24.75 million bank guarantee proceeds following the termination of a RM495 milion hospital construction contract.
On Wednesday, Zecon announced that it had received a notice of termination dated August 2 from JKR for the contract to build a 300-bed hospital located in Petra Jaya, Kuching.
The contract is one of the government hospital and clinic projects nationwide that the Health Ministry had slotted for termination, due to failure to complete within the stipulated time frame.
Zecon's share price was down 2.7% to close at 36.5 sen with 388,800 shares changing hands.