Resources Prima Group CEO gets arbitration notice over payment dispute

RESOURCES Prima Group executive chairman and CEO Agus Sugiono has been served with a notice of arbitration following a dispute over payment.

Mr Sugiono had on July 13 received a letter of demand claiming payment of S$8.5 million representing fees and expenses allegedly owed in respect of fund-raising and other services rendered to the group. The firm's subsidiary, PT Rinjani Kartanegara, also received a letter of demand for S$16.1 million for such services.

These were issued by lawyers acting for a certain Ng Der Sian, who later reassigned the financial benefits of the agreements to Tan Kim Sing.

Rinjani on Nov 14 was then served with a writ of summons by Mr Tan, with legal proceedings having been started in the High Court in Singapore.

Mr Sugiono received the notice of arbitration on Nov 15, with the arbitration proceedings having been started under the International Arbitration Act of Singapore.

The company and Mr Sugiono are seeking legal advice on the respective lawsuit and arbitration case, and said they will take steps to vigorously defend themselves against the claim.