KUALA LUMPUR (Oct 4): Mudajaya Group Bhd’s wholly-owned subsidiary Mudajaya Corp Bhd (MCB), which sued a former employee for alleged breach of fiduciary duty or trust, has obtained a judgment in default against the individual.

"We wish to announce that the court has granted Judgement in Default of Defence against the former employee of Mudajaya Corporation Berhad (“MCB”), a wholly-owned subsidiary of Mudajaya, on Sept 18, 2018. 

"The sealed judgement has been extracted from the court today. MCB intends to pursue with the execution proceeding against the former employee," Mudajaya said in a stock exchange filing today.

In February this year, the group initiated a lawsuit against the former employee for alleged breach of fiduciary duty or trust, three years after it first issued a statement on the matter.

At the time, Mudajaya said should MCB succeed in the suit, it would have a positive impact on the group's financial position in the current financial year ending Dec 31, 2018 (FY18), but did not elaborate.

On March 20, 2015, the group announced it found additional costs had been incurred in a specific project undertaken by the group, which had been included in the group’s fourth quarter results in its financial year 2014.

Based on an internal comprehensive review conducted then, Mudajaya said there was an isolated case whereby irregular transactions were recorded in one project involving one former employee of the group.

Shares of Mudajaya closed 2.5 sen or 5.88% lower at 40 sen today, bringing its market capitalisation to RM235.95 million.