Ranhill unit gets legal notice from WRP Asia Pacific over contracts

PETALING JAYA: A unit of Ranhill Holdings Bhd has received legal notice from WRP Asia Pacific Sdn Bhd in relation to contracts it entered in 2015, asking the company to either commence work or face legal action.

Ranhill Water Technologies Sdn Bhd (RWT) was awarded the contracts for the construction and supply of materials for the development of a 30 million litre per day (MLD) water treatment plant, intake plant and pipeline by WRP Asia Pacific on Aug 15, 2015 and Sept 22, 2015.

It said RWT had, on numerous occasions, expressed its desire to terminate the contracts due to the long delay and failure by WRP Asia Pacific to obtain necessary approvals from relevant authorities for the proposed development, particularly the “Kebenaran Merancang” approval, thus rendering the contracts void under the law.

In its filing with stock exchange, Ranhill Holdings said its unit received the letter on Monday requiring it to commence work within 14 days from receipt of the letter, failing which WRP Asia Pacific will commence action to claim for damages and loss.

“As at the date of this announcement, we are unable to ascertain the actual damages and loss that may be claimed against RWT as it is disputing the allegations of breach of contracts.

“RWT has engaged a legal firm to advise and represent RWT on the matter,” it added.

The group said its counsel was of the view that the allegations of breach of contract by RWT was without merit, and consequently, the claim for damages was baseless.

Other than Loong Mei Yin, who is also a director of WRP Asia Pacific, the group said none of the directors, major shareholders and persons connected with the directors and major shareholders of Ranhill Holdings has any interest, direct or indirect, in the matter.