Kerjaya Prospek wins RM75.46m adjudication award in dispute with Yong Tai

• The adjudicator ordered Yong Tai’s wholly owned subsidiary Apple 99 Development Sdn Bhd pay the sum together with interest to Kerjaya Prospek’s wholly owned unit Kerjaya Prospek (M) Sdn Bhd (KPM), Kerjaya Prospek said in a bourse filing on Tuesday.

KUALA LUMPUR (May 13): Kerjaya Prospek Group Bhd (KL:KERJAYA) said an adjudicator has ordered Yong Tai Bhd (KL:YONGTAI) to pay the construction outfit RM75.46 million over an alleged unpaid contract for a mixed development project in Melaka, known as “The Apple”.

An adjudicator is a neutral party who helps resolve such disputes quickly, especially in construction and contract cases.

The adjudicator ordered Yong Tai’s wholly owned subsidiary Apple 99 Development Sdn Bhd pay the sum together with interest to Kerjaya Prospek’s wholly owned unit Kerjaya Prospek (M) Sdn Bhd (KPM), Kerjaya Prospek said in a bourse filing on Tuesday.

KPM filed the adjudication against Apple 99 in November 2024. The RM75.46 million adjudication award is 71.8% of the outstanding sum claimed by KPM.

In a separate filing, Yong Tai confirmed the adjudication decision, noting the adjudication award as “significantly lower” than the RM105.14 million claimed by KPM.

“The company (Yong Tai) and Apple 99 are now seeking legal advice on the adjudication decision and further announcements will be made as and when there are material developments on the above litigation matter,” it added.

Yong Tai also said the adjudication decision is not expected to have a material financial effect, as it reiterated the sum claimed by KPM has already been accounted for in Apple 99’s financial statement for the financial year ended June 30, 2024.

The dispute revolves around an alleged outstanding contract sum of RM105.14 million on construction work KPM undertook for “The Apple”.

The work was part of a RM213.75 million contract awarded to KPM in 2016 for the main building works of a project that included a 16-storey hotel, a 32-storey service suite tower, and an eight-storey parking podium.

Prior to the adjudication proceedings, KPM sued Apple 99 for RM105.14 million, claiming Apple 99 breached a settlement agreement from February 2020. KPM also sought to enforce both the settlement and hotel sale agreements.

In response, Apple 99 counterclaimed, arguing that a 2023 supplementary agreement supersedes the original settlement and demanded RM76.62 million for losses due to delayed completion and unrectified contract works.

The lawsuit is still ongoing, with trial dates set for October this year.

Besides KPM’s suit against Apple 99, the Kerjaya Prospek unit also has a separate lawsuit against Yong Tai and its chief executive officer Datuk Boo Kuang Loon for the pair to cover the RM105.14 million sum in their capacity as corporate and personal guarantors.

Shares in Kerjaya Prospek ended unchanged at RM2.05, valuing the group at RM2.6 billion. Yong Tai shares closed 1.5 sen or 8.11% higher at 20 sen, valuing the company at RM83.49 million.

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