HSS Engineers says liability to MAHB claims limited, covered by insurance

PETALING JAYA: HSS Engineers Bhd believes its liability against any claims by Malaysia Airports Holdings Bhd (MAHB), is limited to a professional indemnity insurance policy taken by its unit, HSS Integrated Sdn Bhd (HSSI), as a condition of its contract with the airport operator.
The insurance, however, is only for a cover of RM3 million.
MAHB is claiming a sum of RM64.62 million for alleged breach of a memorandum of agreement (MoA) between MAHB and HSSI for works done at the arrival and departure area of klia2, the low-cost carrier terminal.
“Pursuant to the terms of the memorandum of agreement and notwithstanding the notice of arbitration, the board of the company is of the view that HSSI’s liability is limited to the amount covered by the professional indemnity insurance policy which was submitted to MAHB,” the group told Bursa Malaysia yesterday.
Thus, the board is of the view that the matter will not have any material impact on the company’s financial and operational position, order book and future earnings.
HSSI had previously said the claim by MAHB is unsubstantiated and without merit and the notice of arbitration premature, given ongoing mediation between MAHB and HSSI, as required in accordance with the MoA.