KUALA LUMPUR: SP Setia Bhd today announced that it is suing its former president and chief executive officer Datuk Khor Chap Jen and others for breach of duties in land dealings in Sabah.
Its former deputy president and chief operating officer Datuk Wong Tuck Wai and executive vice president Datuk Kow Choong Ming are also named in the suit, which lists 11 defendants, filed in Shah Alam High Court today.
Khor was CEO of SP Setia between 2016 and 2021. Wong is currently CEO of IJM Land Bhd.
SP Setia in its filing with Bursa Malaysia Securities said it is claiming breaches of duties by the former director and senior management of the company and its subsidiaries in relation to the acquisition of six plots of land located at Jalan Lintas, Kota Kinabalu, and the sale of units under its Aeropod project (Phase 3A).
It said it also brought the action for breaches of duties by its former senior management, dishonest assistance, conspiracy, deceit, and the breaches of Supplemental Agreement dated March 11, 2021 (which varied the terms of the Master Sale and Purchase Agreement dated July 10, 2017) by the other defendants which include Pristigo Properties Sdn Bhd.
Among others SP Setia is seeking a declaration that Aeropod Sdn Bhd is entitled to the ring-fenced money of RM60.7 million which was retained by Aeropod as security towards the performance of Pristigo Properties' obligations under the Supplemental Agreement dated March 11, 2021.
It is also seeking another RM37.6 million compensation after the deduction of the ring-fenced money; and late payment interest of RM5.2 million, with further interest until final settlement by the court.
SP Setia's share price closed 2.4 per cent higher at RM1.27 a share, giving it a market capitalisation of RM6.17 billion.