Ecofirst Consolidated counters Kerjaya Prospek's RM20mil suit with claim of conspiracy

KUALA LUMPUR: Kerjaya Prospek Group Bhd today said that its unit's RM20 million lawsuit against Ecofirst Consolidated Bhd's subsidiary has been met with a counterclaim of conspiracy by BCM Holdings Sdn Bhd's former directors and Kerjaya Prospek (M) Sdn Bhd (KPM).

A unit of Ecofirst Consolidated Bhd, BCM, has added its former chief executive officer and executive director Datuk Tiong Kwing HeeTiong as the second defendant and Tan You Tiong as the third defendant in its counterclaim.

It is requesting for a declaration of the invalidity and unenforceability of the RM404 million letter of award issued in June 2023, as well as damages for the alleged conspiracy between KPM and the former directors of BCM.

Tiong has requested an extension of time to file his defence.

In a filing with Bursa Malaysia Securities Bhd, Kerjaya Prospek said the court has allowed until April 10, 2024 for the defence to be filed. 

It added that the next case management session has been scheduled for April 25 this year to provide the court with an update on the case's progress. "The company will make further announcement as and when there are material developments on the BCM suit," it noted.

To recap, KPM is suing BCM RM20 million for agreed liquidated damages which it said is provided for in the letter of award, for terminating a RM404 million contract given to it, for a proposed residential development project. 

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