S P Setia initiates legal proceedings against former senior management for alleged breaches of duties

PETALING JAYA: S P Setia Bhd has initiated legal proceedings against its former senior management over alleged breaches of duties linked to the purchase of lands in Kota Kinabalu, Sabah, as well as the sale of units under the company’s Aeropod project.

In a filing with Bursa Malaysia, S P Setia said Datuk Wong Tuck Wai (its former deputy president and chief operating officer), Datuk Kow Choong Ming (former executive vice president) and Datuk Khor Chap Jen (former president and chief executive officer and director) were among the 11 defendants it named in the suit.

When contacted, Wong said the suit had come as a complete surprise.

“I have not been served with the papers of the suit in question and will have to read them in their entirety before I can make a more formal statement.

“To the best of my knowledge, I had discharged my duties as an officer of S P Setia conscientiously, diligently and responsibly with absolute due care at that point in time of the said acquisition, which was approved by the board of directors after due processes that were in place at the company.”

Meanwhile, in its statement, S P Setia said the other defendants are Wilfred Yong Chen Leong, Alan Wong Siew Ong, Pristigo Properties Sdn Bhd, Asia Dream MM2H Sdn Bhd, Optimise Profit Sdn Bhd, Glorywise Century Sdn Bhd, Bigdeal Synergy Sdn Bhd and Sinermaju Sdn Bhd.

“The suit concerns primarily the breaches of duties by the former director and senior management of the company and its subsidiaries in relation to the acquisition of six plots of land located at Jalan Lintas, Kota Kinabalu, and the sale of units under its Aeropod project (Phase 3A).”

S P Setia said it has also brought this action against the above named defendants for alleged breaches of duties, dishonest assistance, conspiracy, deceit and the breaches of supplemental agreement dated March 11, 2021, which the company said varied the terms of the master sale and purchase agreement dated July 20, 2017, by the other defendants.

S P Setia is seeking a declaration that Aeropod is entitled to a ring-fenced sum of RM60.67mil that was retained by Aeropod as security towards the performance of Pristigo Properties’ obligations under the March 2021 supplemental agreement.

The property developer is also seeking damages or equitable compensation for an additional sum of RM37.59mil, after deducting the ring-fenced money.

S P Setia is also seeking damages or equitable compensation for late payment interest of RM5.2mil up to Dec 31, 2020 and further interest from Jan 1, 2021, until the final settlement to be assessed by the court, as well as other and further damages or equitable compensation to be assessed by the court.

S P Setia said the suit is fixed for case management on Sept 18, 2024.

“The suit is not expected to have any material effect on the earnings per share and net asset per share of S P Setia for the financial year ending Dec 31, 2024, or any material operational impact on S P Setia.”