KUALA LUMPUR: Tafi Industries Bhd’s wholly owned subsidiary T.A. Furniture & Projects Sdn Bhd (TAFPSB) has mutually terminated the contract awarded by Lambaian Delta Sdn Bhd (LDSB).

In a filing with Bursa Malaysia, Tafi said the contract, awarded last December was in relation for the construction of staff quarters for the Health Ministry in Labuan for a contract sum of RM23.64mil.

“TAFPSB and LDSB have mutually agreed on the termination of the contract on April 14, 2023, and accordingly, the contract shall be of no further force and effect and neither party shall have further obligations with respect thereon,” it said.

“The mutual termination of the contract is not expected to have a material impact on the profit and net tangible assets of the company for the financial year ending Dec 31, 2023,” it added.