KUALA LUMPUR, Aug 17 — Pestech International Bhd’s shares on Bursa Malaysia tumbled following the termination of its wholly-owned unit, Pestech Technology Sdn Bhd’s contract with Malaysia Airports Holdings Bhd (MAHB).
At 10.22am, the counter slipped 2.5 sen to 26.5 sen with 23.44 million shares changing hands.
Under the contract, Pestech Technology was tasked to supply, design and build an automated people mover (APM) or aerotrain at the Kuala Lumpur International Airport (KLIA).
In a statement yesterday, MAHB said the termination of the contract was due to Pestech’s non-performance, compromising significant project milestones and risking delays in delivering the project within the required deadline.
“This decision was taken by MAHB’s board of directors, in adherence to MAHB’s principles of governance and based on rigorous monitoring of the progressive development of the APM project by MAHB’s management and its independent consultants.
“Pestech has been found to be in material breach of its obligations under the contract and has failed to remedy the same within the specified time period,” the airport operator said.
To recap, Pestech was appointed by MAHB’s wholly-owned subsidiary, Malaysia Airports (Sepang) Sdn Bhd (MA Sepang) as the design and build contractor for the KLIA Aerotrain Replacement Programme, worth RM742.95 million, on December 14, 2021, through an open tender process.
MAHB said that following the notice of termination, which was preceded by a notice of default to Pestech, MA Sepang would be able to recommence and complete the works on schedule through the engagement of other parties.
The company said it remains committed to assigning the necessary resources to minimise potential delays to the APM project.
Meanwhile, MAHB’s shares went down 4.0 sen to RM6.85 at 10.22 am, with 51,800 shares changing hands. — Bernama
