EcoFirst alleges conspiracy in award of now-terminated contract to Kerjaya Prospek

• After the termination, Kerjaya Prospek filed a lawsuit against EcoFirst’s wholly-owned unit, BCM Holdings Sdn Bhd, claiming RM20 million in termination damages.

KUALA LUMPUR (March 22): EcoFirst Consolidated Bhd is alleging that its former directors had conspired with Kerjaya Prospek Group Bhd in the award of a RM404.35 million residential development project in June last year, which was subsequently terminated in November.

After the termination, Kerjaya Prospek filed a lawsuit against EcoFirst’s wholly-owned unit, BCM Holdings Sdn Bhd, claiming RM20 million in termination damages.

BCM subsequently filed a counterclaim against Kerjaya Prospek, while including its former chief executive officer and executive director Datuk Tiong Kwing Hee, as well as substantial shareholder Tan You Tiong as defendants.

In a stock exchange filing on Friday, Kerjaya Prospek updated that a case management was held on Tuesday (March 19), during which Tiong requested for an extension of time until April 10 to file his statement of defence. The court allowed the request and fixed April 25 as the next case management date.

Tiong had retired from the board in October last year after expressing his intention not to seek re-election at the group’s annual general meeting.

Tan is the single-largest shareholder in EcoFirst, with a 13% direct stake and 11% indirect interest as at Jan 22.

BCM is seeking a declaration that the contract for the construction of the residential development in Kuala Lumpur awarded to Kerjaya Prospek last June is invalid and unenforceable.

Shares of Kerjaya Prospek closed a sen or 0.6% lower at RM1.79 on Friday, giving it a market capitalisation of RM2.27 billion. EcoFirst closed unchanged at 35 sen, valuing it at RM422.77 million.

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