MMHE claiming RM125m from EA Technique

PETALING JAYA: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has served a payment claim against EA Technique (M) Bhd under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) amounting to US$30.22 million (RM125 million).
MMHE said in a filing with the stock exchange that it reserves the right to pursue any other legal actions as may be permitted under the Malaysian law including, further claims under CIPAA.
"MMHE is currently preparing a response to the notice of arbitration issued by EA Technique, to defend and to make counter claims in the arbitration proceedings for amongst others, unpaid invoices pursuant to additional work orders and costs," it noted.
MMHE had on Sept 27, 2018 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.
EA Technique had started arbitration proceedings against MMHE claiming a sum of US$21.74 million.
"The claims by EA Technique are not expected to have an adverse material impact to the financial position as well as to the operations of the company," MMHE added.