Westports Holdings Berhad (Westports) has commenced authorized proceedings in opposition to Oracle Company Malaysia Sdn Bhd (Oracle) and Bank of America Malaysia Berhad (BoA) on the Kuala Lumpur Excessive Courtroom on the termination of two agreements.
Based on an announcement, the authorized motion includes to Westports Holdings Berhad’s subsidiary Westports Malaysia Sdn Bhd.
Westports stated it subscribed to the Oracle ERP Software program System by executing two agreements with Oracle. The primary settlement, Oracle Cloud Providers Settlement, entails an Oracle license charge of $3.6 million (RM15.7 million), in line with Westports.
The Malaysian terminal operator says it additionally entered into one other settlement with Oracle and a contract with Oracle’s outsource accomplice, the full value amounting to $3.57 million (RM15.Three million), for the implementation of the Oracle ERP Software program System and a payroll system.
Oracle, Westports claims, subsequently assigned the primary settlement to BoA, and Westports is required to pay the license charge funds on to BoA.
The Oracle ERP Software program System challenge commenced in February 2019. In the course of the Person Acceptance Testing (UAT) part, Westports claims to have noticed both information discrepancy or an lack of ability of the system to execute the purported necessities.
Highlighted technical requests remained excellent, in line with Westports, and it couldn’t proceed to go-live with the system. Westports ultimately terminated the 2 agreements on 30 December 2019.
Previous to the terminations, Westports had paid $1.59 million (RM6.eight million) and claims to have subsequently acquired a letter of demand from BoA for $140,000 (RM0.6 million). Oracle made a counter-claim of $960,000 (RM4.1 million) for the companies rendered.
Westports says it’s particularly disputing in opposition to the counter-claim on the premise that the 2 agreements have been terminated, and that the system couldn’t proceed to go-live regardless of the purported accomplished milestones.
“Westports is seeking the court to declare that the agreement terminations have negated the obligation to pay BoA,” it stated.
The case administration has been fastened on the Kuala Lumpur Excessive Courtroom on eighth July 2020.