MMHE to make counter claims against EA Technique

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), in defending the claims made by EA Technique (M) Bhd, said it will make counter claims for the additional work orders issued and costs incurred as a result of the extension of time.
“Apart from the arbitration proceeding, MMHE reserves its right to pursue any other legal actions as may be permitted under the Malaysian laws,” it said in a filing with the stock exchange.
MMHE said it will continuously update the stakeholders of any material impact to the group’s business and financial results for the financial year ending 2018.
MMHE noted that its wholly owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd had on September 27 received a notice of arbitration from EA Technique for a number of claims in relation to the contract for the provision of demolition, refurbishment and conversion of donor vessel into a floating, storage and offloading facility for Full Development Project, North Malay Basin.
On Monday, EA Technique announced that it had started arbitration proceedings against MMHE claiming a sum of US$21.74 million (RM90 million).
Recall that MMHE was appointed as the main contractor for the contract via a letter of award dated June 9, 2015. During the period of the contract, MMHE issued additional work orders to EA Technique claiming payments for the work done. Disputes and differences have arisen between the parties in respect of the sum arrived under the invoices and the additional work orders.
On June 22, 2018, EA Technique and MMHE entered into an agreement via a letter of undertaking to settle the sums due under the invoices and the additional work orders, but both parties were unable to reach an amicable settlement.
At the midday break, EA Technique's share price gained 4 sen or 9.1% to 48 sen, while MMHE was up 4 sen or 6% to 70.5 sen.