KUALA LUMPUR, June 12 — Westports Holdings Bhd’s wholly-owned subsidiary, Westports Malaysia Sdn Bhd (Westports), has commenced legal proceedings against Oracle Corporation Malaysia Sdn Bhd (Oracle) and Bank of America Malaysia Berhad (BoA) at the Kuala Lumpur High Court on the termination of two agreements.
In a filing with Bursa Malaysia today, Westports said it had subscribed into the Oracle ERP Software System by executing two agreements with Oracle on November 30, 2018.
The first agreement, Oracle Cloud Services Agreement entails an Oracle license fee of RM15.7 million, it said.
Westports had also entered into another agreement with Oracle and a contract with Oracle’s outsource partner for the implementation of the Oracle ERP Software System and a payroll system with the total value amounting to RM15.3 million.
“Oracle subsequently assigned the first agreement to BoA and Westports is required to pay the license fee payments directly to BoA.
“The Oracle ERP Software System project commenced in February 2019. During the User Acceptance Testing (UAT) phase, Westports observed either data discrepancy or an inability of the system to execute the purported requirements,” it said.
Highlighted technical requests remained outstanding and Westports could not proceed to go-live with the system.
Westports eventually terminated the two agreements on December 30, 2019, it said adding that prior to the terminations, Westports had paid RM6.8 million.
After the terminations, Westports still received a letter of demand from BoA for RM0.6 million and Oracle made a counter-claim of RM4.1 million for the services rendered.
Westports is disputing against the counter-claim on the basis that the two agreements have been terminated and that the system could not proceed to go-live despite the purported completed milestones.
“Westports is seeking the court to declare that the agreement terminations have negated the obligation to pay BoA. The case management has been fixed at the Kuala Lumpur High Court on July 8, 2020,” according to Westports. — Bernama
