Epicon Berhad announced today that its wholly-owned subsidiary, Transnational Builder Sdn Bhd, has launched a major legal suit against Ibrahim & Sons Engineering Sdn Bhd and three individuals, claiming a total of RM20.3 million.
Concurrently, TBSB has successfully secured an ex-parte sealed Mareva Injunction and an ad interim order from the Johor Bahru High Court to freeze the defendants’ assets up to the claimed amount. Epicon’s solicitors served the asset-freezing order to the relevant banks and the defendants today.
Alongside IBSE, the other named defendants are Zafrin bin Ibrahim, Zulkflee bin Ibrahim, and Khaeromze bin Ahmad.
The dispute stems from a letter of award (LOA) issued by IBSE to TBSB on October 2, 2023. Under the agreement, TBSB was appointed as the subcontractor to handle the installation, testing, and commissioning of underground cables for five distinct contracts awarded to IBSE by Tenaga Nasional Berhad (TNB), carrying a total contract value of RM130,893,582.
According to Epicon, TBSB initially provided performance security via two bankers’ cheques totaling RM1,695,129.75. In November 2024, TBSB replaced those cheques with bank guarantees and requested a refund of the cash deposit. However, IBSE has failed to return the money.
Furthermore, TBSB issued subsequent bank guarantees, leaving three active performance bonds worth an aggregate RM1,949,549.35 in place.
Epicon stated that out of a total progress billing of RM42,411,628.15 for work successfully completed by TBSB, an amount of RM16,713,957.07 remains overdue and completely unpaid by IBSE.
The group assured shareholders that the litigation will not result in operational disruptions, as TBSB has already completely ceased all physical works related to the subcontracted TNB project.
