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Rich Capital gets new legal demand from Batam project partner

RICH Capital has received another legal letter via a law firm appointed by Karya Indo Batam (KIB), demanding payment for the loss and damage it suffered as a result of unlawful conspiracy and breaches of duties.

KIB is involved in a property development project in Batam with an indirect subsidiary of Rich Capital, Oxley Batam Pte Ltd. The two parties had formed an equal joint-venture company, Oxley Karya Indo Batam (OKIB), to undertake the Oxley Batam Convention City Project.

The new letter, which was sent by a Singapore law firm and dated Jan 23, 2020, contained allegations of unlawful conspiracy by certain parties.

The parties are Rich Capital, its controlling shareholder Wang Zhenwen, representative for the project Aldrin Tai Kok Kit, Rich Capital's associate company Rich-Link Construction (RLC), and Oxley Batam Pte Ltd.

It also alleged breaches of duties by Mr Wang and Mr Tai.

The letter demanded that the parties provide a written confirmation that they acknowledge the alleged acts of wrongdoing, provide on oath a full account of the particulars of all acts of wrongdoing, and agree to pay KIB for all loss and damage it has allegedly suffered as a result.

It also demanded that the parties consent that all loss and damage allegedly suffered by KIB be agreed or determined by the High Court of Singapore.

On Sep 13, 2019, Rich Capital said it received two legal letters from an Indonesian law firm appointed by KIB that demanded full control of the joint venture, and compensation of S$20 million.

The letters alleged conspiracy and breaches of the interested persons transaction mandate and Indonesian criminal laws. The allegations were made with regard to the appointment of RLC as the main contractor of the Batam project.

Rich Capital formally rejected and denied the allegations on Aug 16 through its Indonesian lawyers, Hillman Sembiring Advocates.

The group said it is currently seeking legal advice in order to "rigorously" resist and defend the allegations made against the group in the new letter, as well as any legal proceedings that may be commenced in Singapore.