KUALA LUMPUR (June 26): The Supreme Court of Algeria has dismissed an appeal filed by Malakoff Corp Bhd’s associate Almiyah Attilemcania SPA (AAS) in relation to an alleged breach of foreign exchange regulations and the imposed penalty.

This is regarding a sea water desalination plant in Tlemcen, Algeria.

In a filing to Bursa Malaysia on Monday (June 26), Malakoff said it is seeking legal advice from its solicitors in Algeria on the implications of the court’s dismissal.

Malakoff holds an indirect effective interest of 35.7% in AAS, via Tlemcen Desalination Investment Company SAS (TDIC), a 70%-owned indirect subsidiary of Malakoff International Ltd, which in turn is wholly owned by Malakoff.

The legal proceedings against AAS was for a breach of foreign exchange regulations concerning a sum of US$26.99 million (RM90.1 million) in connection with the sea water desalination plant back in 2014.

In November 2018, AAS and TDIC received a notice from Sonatrach SPA and L'Algerienne Des Eaux to terminate the water purchase agreement inked on Dec 9, 2007.

L'Algerienne is the state-owned national public water entity of Algeria, while Sonatrach is the national oil company of Algeria.

In 2019, Malakoff appointed international arbitration lawyers in Paris and Kuala Lumpur to challenge the claims in relation to the termination.

Malakoff shares closed unchanged at 57.5 sen, valuing the company at RM2.9 billion.