business

R&A receives summons and claim of RM112,790 from TM

KUALA LUMPUR: R&A Telecommunication Group Bhd has received a writ of summons and statement of claim from Telekom Malaysia Bhd (TM) amounting to RM112,790 for damaging its cables in Sri Petaling, near Endah Parade in 2013.

In a filing to Bursa Malaysia today, the company said the particulars of the claim besides the outstanding sum of claims are an interest at the rate of five per cent per annum on the amount of RM112,790.30 stated above and calculated from January 9, 2014 until the date of full settlement and cost.

On March 9, 2013, TM was informed that its underground trunking, copper cables and fiber optics at Jalan 3/149E Sri Petaling nearby Endah Parade were damaged.

Subsequently, TM had carried out investigation and noticed that R&A wholly-owned subsidiary, R&A Telecommunication Sdn Bhd (RASB) and/or its agent and/or employees had commenced horizontal direct drilling works and had negligently caused damage to TM’s cables at the construction area.

It said as a result of the negligence of RASB and/or agent and/or employee, TM was forced to bear a loss of RM112,790.30 due to the repair works conducted to the cables.

Subsequently, TM had lodged a police report in relation to the incident in respect of the cables damage.

TM had sent a letter dated March 20, 2013 to RASB notifying RASB that TM had incurred losses due to the damage caused by RASB and demanded for a full compensation after the assessment of losses conducted by TM.

TM had also issued and forwarded an invoice dated December 9, 2013 to RASB to demand for a sum of RM112,790.30 as compensation for the repair works done on the damaged underground cables, labour cost, material costs and other expenses incurred during the repair works.

“However, RASB had failed/refused to settle the outstanding payments or any part thereof,” it said.

Concurrently, TM had also served a notice of demand dated March 10, 2014 to RASB demanding for the compensation amounting to RM112,790.30.

However, it said RASB still failed, refused and/or neglected to comply with the notice.

It said the giling of the writ of summons and statement of claim was a result of RASB failing to settle the said amount.

R&A said the financial and operational impact of the summons and claim on the group is minimal as RASB has ceased operations since June 2015 and is not its major subsidiary.

“R&A is seeking the necessary legal advice to remedy this situation,” it said.

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