'Bankrupt' firm flagged by Loke says its financial troubles long over
A government contractor that a lawmaker flagged as allegedly bankrupt said its financial troubles have long been over.
Inai Kiara Sdn Bhd (IKSB), whose subsidiary holds the concession for dredging and reclamation works at the country's ports, admitted it was put under receivership by Maybank in late 2016.
A government contractor that a lawmaker flagged as allegedly bankrupt said its financial troubles have long been over.
Inai Kiara Sdn Bhd (IKSB), whose subsidiary holds the concession for dredging and reclamation works at the country's ports, admitted it was put under receivership by Maybank in late 2016.
Its CEO, Quzaim Mohamad Guljar Mohamad, said this was because of overdue payments on a loan the company took to build six dredgers.
However, he said the receivership was uplifted just eight weeks later, in late Jan 2017.
The cover of a Maybank letter he attached to his statement stated this was on IKSB's request and that it was subject to the fulfilment of conditions. These conditions were not stated.
Quzaim, however, said that IKSB had been paying its debts on schedule, under the watchful eye of Ernst & Young, which was appointed as a monitoring accountant.
As for its subsidiary Integrated Marine Works Sdn Bhd (IMW), he said the firm was solvent and has completed 14 dredging projects with contracts worth RM700 million.
Of this amount, IKSB used RM400 million to pay back Maybank, RM270 million to pay suppliers and other debtors and the remaining RM30 million for operational costs.
"As such, IMW and its parent company IKSB are solvent corporate entities and are not bankrupt, and are capable of completing projects entrusted to it," Quzaim said.
It was previously reported that IMW had been appointed as the contractor to undertake dredging and reclamation works at the country's ports starting July 7, 2021.
IMW was the concession holder for maintenance dredging for all federal ports for 15 years up to Dec 21, 2019.
Seremban MP Anthony Loke questioned the company's status and why it was awarded a new contract in the Dewan Rakyat yesterday.
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