OCR Group’s units sued by contractor over alleged payment default

KUALA LUMPUR (April 19): Property developer OCR Group Bhd’s units are being sued by their contractor over alleged payment default of RM30.93 million in relation to projects in Kuantan and Petaling Jaya.

Kencana Amanjaya Sdn Bhd is suing OCR’s 90%-owned subsidiary OCR Properties (Kuantan) Sdn Bhd relating to a residential project involving 979 terrace houses and 130 units of semi-detached houses in Kuantan.

OCR told Bursa Malaysia on Wednesday (April 19) that Kencana was appointed as contractor in January 2018 for this project via a letter of award (LOA), which was terminated in April 2021.

Kencana’s claims include RM16.38 million of outstanding debt and general damages arising from breach of contract.

In a separate stock exchange filing, OCR said that its wholly-owned subsidiary OCR Construction Sdn Bhd was similarly served with a writ of summons and statement of claim from Kencana’s solicitors.

This was related to another project to build a 41-storey commercial building in Bandar Sunway, Petaling Jaya, for which Kencana was appointed as contractor in May 2019 via another LOA, which was then terminated in April 2021.

Kencana’s claims in this lawsuit includes RM14.55 million of outstanding debt and general damages arising from breach of contract.

OCR, which is 26%-owned by group managing director Ong Kah Hoe, said it has instructed its solicitors to contest the matter to defend its interest.

Shares of OCR closed 6.3% or half sen higher at 8.5 sen on Wednesday, giving the company a market capitalisation of RM84.15 million.