WESTPORTS COMMENCED LEGAL PROCEEDINGS AGAINST ORACLE AND BANK OF AMERICA
Kuala Lumpur, 12th June 2020
Holdings Berhad’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.
On 30 November
2018, Westports had subscribed into the Oracle ERP Software System by executing
two agreements with Oracle. The first agreement, Oracle Cloud Services
Agreement, entails an Oracle license fee of RM15.7 million. Westports had also
entered into another agreement with Oracle and a contract with Oracle’s
outsource partner, the total value amounting to RM15.3 million, for the
implementation of the Oracle ERP Software System and a payroll system. 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. Highlighted technical requests
remained outstanding, and Westports could not proceed to go-live with the
system. Westports eventually terminated the two agreements on 30 December 2019.
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. 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 8th July 2020.
About Westports Holdings Berhad
Holdings Berhad was listed on the Main Market of Bursa Malaysia Securities
Berhad on 18th October 2013 and is the largest listed port operator
Westports is strategically located in Port Klang along the Straits of Malacca. The Company is involved in a container and conventional cargo handling as well as providing a wide range of port services, including marine, rental and other ancillary services.
document contains certain forward-looking statements with respect to Westports’ financial condition, results of
operations and business, and management’s strategy, plans and objectives of Westports.
These statements include without limitation, those that express forecasts,
expectations and projections such as forecasts, expectations and projections in relation to new products and services,
revenue, profit, cash flow, operational metrics etc.
statements (and all other forward-looking statements, contained in this
document) are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond Westports’ control,
are difficult to predict and could cause actual results to differ materially
from those expressed or implied or forecast in the forward-looking statements.
forward-looking statements in this document are
based on information known to Westports on the date hereof. Westports
undertakes no obligation publicly to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
information in this document, including forward-looking statements, has not
been independently verified. Without limiting any of the foregoing in this disclaimer, no representation
or warranty, express or implied, is made as to, and no reliance should be
placed on, the fairness, accuracy or completeness of such information.
Westports and its subsidiaries, affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs or expenses howsoever arising out of or in connection with this presentation.