Current report no 34/2016 of 21 October 2016 – Request for payment of contractual penalty for rescinding the agreement on performing the ISOK system

This current report was published via ESPI system on 21 October 2016, at 16:11

Management Board of Qumak S.A. (hereafter referred to as the “Company”) informs that on 21 October 2016 the Company received from the National Water Management Authority (hereafter referred to as the “Ordering Party”) a request for payment of contractual penalty on account of rescinding the Agreement of 29 August 2013 on designing, building and implementing the IT system of the country’s protection from extraordinary threats (ISOK), in the amount of 30% of net remuneration for performing this Agreement, i.e. PLN 15,24192,142.68 within 14 days from the day of receiving this request.

On 28 June 2016 the Company received from the Ordering Party a letter with a statement of rescinding the performance of stage 5 of the ISOK project. It was submitted pursuant to Article 491 paragraph 2 of the Civil Code. The Ordering Party pointed to a reason for rescinding as being in delay with regard to a deadline for the stage 5 as set forth in the Agreement. The Company informed about receiving the above-mentioned letter in the current report no 23/2016 of 28 June 2016.

Management Board of the Company does not accept the above-mentioned request as valid and, as a consequence, questions the grounds for calculating the penalty for rescinding the Agreement for reasons attributable to the Company, pointing to the lack of factual and legal basis for calculating such a penalty.

About other legal actions undertaken with regard to the ISOK project the Company informed in the current report no 26/2016 of 22 July 2016, 28/2016 of 16 August 2016, and 32/2016 of 11 October 2016.

 

Legal ground:

Article 17 item 1 MAR – confidential information.