Boustead: RM5.54m suit is over commissioning of generator

PETALING JAYA: The writ of summons and statement of claim of RM5.54 million served to Boustead Heavy Industries Corp Bhd’s (BHIC) wholly-owned subsidiary company, Boustead Penang Shipyard Sdn Bhd (BPS) by Muara Hijau Sdn Bhd two days ago is for the alleged costs incurred during the commissioning phase of the microturbine generator (MTG).

BHIC said Muara Hijau was a contractor appointed by BPS to supply MTG for one of BPS’s oil & gas projects.

During performance of test run in the commissioning phase to synchronise the MTG and a diesel engine generator (supplied by BPS’s other contractor), the MTG tripped and damaged.

“Due to such incident, the plaintiff claims that the warranty of the MTG is void.

The plaintiff is now claiming for the alleged costs incurred during the commissioning phase and to repair and maintain the MTG as well as renewal of its warranty,” BHIC said in a stock exchange filing yesterday.

It said that save for the amount claimed by the plaintiff together with the interest to be charged on the outstanding amount and/or legal cost to be incurred by BPS, the writ of summons is not expected to have other financial and/or operational impact to the company.

Under the writ of summons, Muara Hijau is claiming against BPS a total sum of RM5.54 million, interest at 5% per annum from the date of judgment until the date of full settlement and cost for the civil action, arising from an alleged breach of contract by BPS.
The matter has been fixed for case management on Feb 16, 2017.