SCIB secures injunction against Awana JV Suria Saga over RM63.9mil financing facility

PETALING JAYA: Sarawak Consolidated Industries Berhad (SCIB) has obtained an interlocutory injunction order against Awana JV Suria Saga Sdn Bhd in relation to the ongoing material litigation involving its wholly-owned subsidiary, SCIB Properties Sdn Bhd (SCIBP).

In a statement, SCIB said the Shah Alam High Court had granted the interlocutory injunction to restrain Awana from further utilising the Islamic Financing Facility of RM63.9mil, which covers Existing Term Financing-I 1, Existing Term Financing-I 2 and Bridging Financing-I granted by MBSB Bank Bhd, pending the removal of SCIB as the corporate guarantor or the disposal of this suit, whichever occurs earlier.

“With Awana now restrained from accessing the financing facility, questions remain as to how Awana will continue with the project.

“There are concerns as to how the interests of prospective home buyers can be protected, especially those from the B40 category.”

SCIB managing director Ku Chong Hong said the injunction reflects the seriousness of the matter and SCIB’s responsibility in protecting its financial and reputational interests.

“It is critical that Awana now steps up with a clear and viable solution to move the project forward in the best interest of the public.”

To recap, SCIB had previously entered into a settlement cum appointment of contractor agreement with Awana for the execution of an affordable housing project valued at RM162mil under the Program Perumahan Penjawat Awam scheme.

However, Awana failed to fulfil the necessary conditions under the agreement and subsequently performed unauthorised drawdowns amounting to RM1.65mil from the financing facility without SCIB’s consent.

In response, SCIBP initiated legal action on Feb 5, 2025 against Awana and MBSB, seeking to remove SCIB as the corporate guarantor and to prevent further drawdowns. This culminated in the Court’s decision on April 10, 2025 to grant the interlocutory injunction. This legal milestone not only affirms SCIB’s position but also raises continued concern about Awana’s ability to deliver the project, which is intended to serve civil servant home buyers under the government’s affordable housing agenda.

The High Court has fixed May 16, 2025 for the next case management date.

“SCIB will continue to monitor developments closely and provide timely updates to all stakeholders as appropriate. The Company is represented by Mr. Eric Tan of Messrs. Ong Kok Bin & Co.”