LOCAL startup Twistcode Technologies Sdn Bhd has filed a multimillion-ringgit lawsuit against Telekom Malaysia Bhd (TM) over an alleged breach of a joint venture agreement aimed at developing accelerated artificial intelligence (AAI) for Malaysia’s oil and gas industry.
The lawsuit, initiated earlier this year, claims TM reneged on a teaming agreement and a letter of award worth nearly RM42 mil originally established in January 2018.
TM sabotaged (the venture) by entering into a memorandum of agreement with a foreign company on July 3, 2020 which Twistcode believes wrongfully hindered healthy competition in local cloud computing, especially AAI, contrary to sections 4(1) and 10 of the Competition Act 2010,
the statement read.
The startup claims it has incurred losses amounting to approximately RM27.5 mil in expenses and commitments, in addition to a payment of RM14.2 mil made to TM under the purchase order linked to the letter of award.
In its defence, TM denies any breach of contract or acts of sabotage as alleged by Twistcode.
TM asserted that its actions did not create a monopoly or violate the Competition Act 2010.
Moreover, TM contended that there is no record of the teaming agreement within its internal documents and claims that Twistcode failed to pay the outstanding balance on the purchase order. TM has filed a counterclaim for RM26.9 mil, alongside unspecified general damages.
Twistcode has denied liability for TM’s counterclaim, arguing that TM did not fulfil its obligations under the purchase order.
Furthermore, Twistcode also contended that TM’s agreement with the foreign entity and a baseless police report filed against it by TM disrupted the joint venture, leading to economic, revenue, business, and reputational damages.
Twistcode is seeking an assessment of damages including compensation for lost income, business opportunities, and reputation as well as aggravated and exemplary damages.
The startup noted that despite police and Malaysian Anti-Corruption Commission investigations in 2020 and 2021, it has not faced prosecution, yet the situation has severely impacted its business and reputation.
The case is scheduled for hearing at the Kuala Lumpur High Court on Oct 8, 2024. Twistcode is represented by the law firm Messrs Mohaji Hazury & Ismail, while TM Bhd is represented by Messrs Wong & Partners. – Aug 2, 2024
