KENANGA ANNUAL REPORT 2020

243 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 43. CONTINGENT LIABILITIES Group and Bank 2020 RM’000 2019 RM’000 (a) On 27 November 2019, the Bank was served with a sealed Writ of Summons and Statement of Claim filed by Lai Sing Foo (“the Plaintiff”). The Plaintiff is alleging that, inter alia, the 2nd Defendant (who is a Dealer’s Representative (“DR”) of KIBB) has arranged for the Plaintiff to purchase shares of a public listed company with a promise to buy back at a higher price from the 3rd Defendant (a third party). The Plaintiff alleges that the 3rd Defendant has failed to buy back the said shares which caused the Plaintiff to suffer losses and claims, inter alia, the difference between the sale proceeds of the said shares and RM3.6 million. The Plaintiff’s claims against KIBB are on the basis that, inter alia, the 2nd Defendant is a DR with KIBB. In this regard, KIBB will contest the Plaintiff’s claim in the Court. The matter is fixed for case management on 8 February 2021 and the trial dates are from 11 to 13 August 2021. 3,600 3,600 (b) On 18 December 2019, the Bank was served with a sealed Writ of Summons and Statement of Claim filed by Opes Capital Berhad (“the Plaintiff”). The Plaintiff is alleging that, inter alia, the 1st Defendant (who was a dealer representative of KIBB) and another third (3rd) party had failed to purchase certain shares of a public listed company on its behalf upon transmitting a total of RM16,000,000, and had caused the Plaintiff to suffer losses. KIBB’s solicitors are of the view that the claim against KIBB is without merit and KIBB will contest the claim in the court. The matter is fixed for case management on 5 February 2021 and the trial dates are from 18 to 21 May 2021. 16,000 16,000 Based on legal advice obtained, the Board of Directors are of the opinion that the Bank has good grounds to defend these claims and that no provisions are necessary as at reporting date.