Pestech International Berhad announce that its subsidiary company, Pestech Sdn. Bhd has received a notification from the Asian International Arbitration Centre that the arbitral proceedings between Shandong Power Equipment Co., Ltd against its subsidiary had commenced.
The arbitration is with regards to the dispute between SPECO and PSB arising from purchase agreements entered between the two on various projects in Selangor, Sarawak and Kedah over sub stations transformers. The purchase agreements were for the design, engineering, design review, supply, manufacturing, full type and special testing, factory testing, packaging, and delivery of autotransformers and power transformers, as well as ancillary accessories supplied by SPECO to PSB.
SPECO is seeking for approximately RMB 7,545,410.27 in respect of the Lachau, Sibiyu and Junjung Project and USD 672,000.00 in respect of the Olak Lempit Project, being the total outstanding amounts allegedly due and owing to SPECO in addition to general damages, interest on any sums awarded by the Tribunal, arbitration costs, and other reliefs as the Tribunal deems appropriate.
PSB said it is disputing the amounts and reliefs claimed and will further be claiming for additional scope of works performed by PSB, amongst others, rectification works, repair works, liquidated damages and other ancillary works in the Projects which PSB will contend is due and payable by SPECO.
The Company said it has appointed a legal firm to represent and assist in the Arbitration proceedings.
