Monday 22 Jul 2024
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KUALA LUMPUR (May 3): Pestech International Bhd has lost an appeal to stop the tampering of machineries used in the Gemas-Johor electrified double track project by main contractor Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd (SPYTL).

Pestech Sdn Bhd, a unit of Pestech International, had filed an appeal against an earlier High Court decision to dismiss its interim injunction application against SPYTL on the matter.

This application was dismissed by the Court of Appeal on Friday, with costs of RM15,000, Pestech said. Pestech did not elaborate on the value of the machineries involved, and whether it would appeal the decision.

Dispute between Pestech and SPYTL emerged in mid-2023 after Pestech was terminated as a sub-contractor for the project.

The project, with a fixed sub-contract price of RM399 million, was awarded in September 2018 to Pestech by SPYTL under the SIPP-YTL JV — a consortium between SIPP Rail Sdn Bhd and SPYTL.

Pestech was to provide turnkey engineering, procurement, construction and maintenance services relating to the electrification system for the 197km rail project, with an initial deadline of April 2021.

Earlier on April 30, Pestech lost a separate appeal in the appellate court to restrain transfer of its performance bond from Maybank Islamic Bhd to SPYTL. Pestech had already made provisions of RM39.9 million in relation to the matter last year.

Shares of Pestech settled unchanged at 21 sen, giving the group a market capitalisation of RM208.37 million. The counter is down 35% this year.

Edited ByTan Choe Choe
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