News

Reference is made to the previous announcements dated 29 February 2016, 2 March 2016 and 3 March 2016 in relation to the Letter of Demand served by Petroliam Nasional Berhad (“PNB”) and Petronas Gas Berhad (“PGB”).     

For consistency, the abbreviations used hereinafter throughout this announcement shall have the same meaning as defined in the preceding announcements unless stated otherwise.

The Board of Directors for MClean Technologies Berhad (“MClean” or “the Company”) wishes to announce that on 31 October 2016, the Company‘s subsidiaries, DWZ Industries (Johor) Sdn. Bhd and DWZ Industries Sdn. Bhd. (collectively referred to as “DWZ Entities”) have been served with a writ and a statement of claim in respect of the Civil Action commenced by PGB. In the Civil Action, PGB (as  Plaintiff) is seeking among others, the following legal remedies on account of alleged negligence of and/or breach of duty in tort by DWZ Entities (as Defendants):-

(a)   A declaration that the Defendants unlawfully and/or wrongfully entered or caused to enter the Plaintiff’s land, and constructed or installed or caused to construct or install an illegal by-pass or illegal fitting; 

(b)   A declaration that the Defendants unlawfully and/or wrongfully released and/or discharged or caused to release and/or discharge industrial effluent and/or other effluent or substance onto the Plaintiff’s land;

(c)   An injunction restraining the Defendants, their employees, servants and/or agents from entering or causing to enter into the Plaintiff’s land, constructing or installing or causing to be constructed or installed any form of piping or structure on the Plaintiff’s land and/or releasing or discharging  or causing to release or discharge industrial effluent and/or any other effluent or substance onto the Plaintiff’s land;

(d)   Losses and damages in the sum of RM6,634,305.40 or any other sum which the Court deems reasonable and proper;

(e)   Interest on the sum awarded in paragraph (d) above;

(f)    General damages to be assessed against the Defendants;

(g)   Aggravated, exemplary or punitive damages to be assessed against the Defendants;

(h)   Interest at the rate of 5% on the judgment sum and costs.

The summarised details of the circumstances leading to the filing of the writ and statement of claim by PGB are as follows:-

1.     PGB contended that there were two incidents of leakage from the PGU Phase II, Sector 3 pipeline network from Segamat to Plentong (“said Pipeline”) which were caused by the DWZ Entities in  unlawfully releasing or discharging industrial effluent onto PGB’s land and/or in the construction and installation of an illegal by-pass or illegal fitting on PGB’s land;

2.     PGB contended that the conduct of the DWZ Entities is punishable by an award of appropriate damages to PGB.

The claim for remedial and other works have been quantified in the Statement of Claim at the sum of RM6,634,305.40. However, the Statement of Claim also includes heads of claim for general damages as well as aggravated, exemplary or punitive damages which are not quantified at this time. The quantum and other particulars of such claim may, as the claim progresses, be quantified by the Plaintiff and will be the subject of further announcements, as appropriate.

The Civil Action, if successful, may have a material impact on the earnings per share and the net assets per share of Mclean, considering that PGB have previously in their letter of demand dated 16 February 2016 demanded damages (including the cost of remedial and other works) in the sum of RM46,754,614.07 which was the subject matter of the previous Material Litigation announcement dated 29 February 2016.

The DWZ Entities shall file Statements of Defence and such other pleadings which are necessary in the Civil Action according to the advice of its solicitors to safeguard its interest in terms of liability and quantum of claim.

The Civil Action is fixed for case management on 24 November 2016.

MClean will make further announcement if there is any material development in the matter.

This announcement is dated 1 November 2016.