Riyadh – Mubasher: Saudi Arabian Amiantit on Sunday stated that the claim raised against its wholly-owned subsidiary PWT by a subcontractor regarding a project in Iraq has been “entirely revoked” by the Court of Appeals on Thursday, 12 January 2017.
The Appeals court revoked the judgement issued by the First Instance Court against PWT and “totally dismissed the claim of the subcontractor”, Amiantit said in a bourse filing.
It added that the decision was based on the subcontractor’s low percentage of work completion “compared to the amounts they cashed and the amounts they claimed.”
On 4 April 2016 the Cassation Court of Iraq had cancelled the previous appealed judgement dated 13 March, 2016, which was issued against PWT.
Amiantit’s 100%-owned subsidiary was made to “indemnify a local subcontractor” by IQD 32.7 billion (SAR 104.4 million at current exchange rate), the filing revealed.
“Over 2015 and 2016, [Amiantit] Group has built a provision of SAR 48 million to cover this case, under the form of a bad debt provision on part of the advance payments made at the start of the project by PWT to the Subcontractor,” the company stated.
It added that the recent appeal judgement “opens the possibility for PWT to claim such amounts back”; however, the Group decided to keep the provision.
