“SCIB has filed a lawsuit against Awana JV Suria Saga over unauthorized loan drawdowns, seeking court declarations to protect its financial interests.“
Kuala Lumpur, 12th Feb 2025, 01.45pm – Sarawak Consolidated Industries Berhad has initiated legal proceedings against housing developer Awana JV Suria Saga Sdn Bhd, alleging unauthorised loan drawdowns that could impact its financial standing.
SCIB’s wholly-owned subsidiary, SCIB Properties Sdn Bhd (SCIBP), has filed a writ of summons against Awana, seeking several court declarations to protect its financial interests.
Key Legal Demands
SCIB is requesting a formal confirmation that the Settlement cum Appointment of Contractor Agreement (SA 2024), signed between SCIBP and Awana in August 2024, has lapsed and is no longer enforceable.
Additionally, the company is seeking a court order compelling Awana to release SCIB from its obligations as a corporate guarantor for the disputed loan facility. If granted, Awana must fulfill this within 30 days from the date of judgment.
SCIB is also applying for an interlocutory injunction to immediately prevent Awana from making further drawdowns on the loan facility while the case is ongoing. This legal move aims to prevent further financial risk and ensure that contractual obligations are upheld in compliance with legal standards.
Commitment to Financial Integrity
SCIB’s group managing director, Ku Chong Hong, reaffirmed the company’s commitment to financial discipline and transparency, stating that legal action was necessary to safeguard shareholder value.
“The unauthorised loan drawdowns are a serious concern, and we are taking all necessary legal steps to protect SCIB’s financial interests. We trust that the judicial process will bring accountability, and we will explore all legal avenues to uphold corporate integrity,” he said.
Despite the legal dispute, SCIB assured stakeholders that its ongoing business operations will remain unaffected. The company will continue to monitor developments closely and provide timely updates as the case progresses.
