Twistcode Sues TM Berhad for RM41.6 Million Over Alleged Breach of Agreement

AI Company, Twistcode, Claims Economic Loss Due to Baseless Police Report

Twistcode Sues TM

Local artificial intelligence and supercomputer specialist Twistcode Technologies Sdn Bhd (Twistcode) has initiated legal action against Telekom Malaysia Berhad (TM Berhad) and two of its key officers. They are seeking a total of RM41.6 million in damages. The suit was filed on the 3rd of January, 2024, at the Kuala Lumpur High Court. Twistcode alleges that TM Berhad breached a ‘Teaming Agreement’, Letter of Award, and Purchase Order. These agreements were related to a joint venture aimed at developing Accelerated Artificial Intelligence (AAI) for the oil and gas industry.

The dispute centres on a claim against TM Berhad. It is alleged that TM Berhad’s actions, including a baseless police report in June 2020, caused the issue. This report led to investigations by the Commercial Crime Investigation Department (CCID). Additionally, the Malaysian Anti-Corruption Commission (MACC) also began investigating Twistcode. Despite these investigations, no charges were brought against the company. Twistcode further alleges that TM Berhad failed to sign a Master Service Agreement (MSA), despite receiving RM14.1 million in payments.

TM Berhad has refuted Twistcode’s claims. However, the company remains steadfast in its position and is prepared to substantiate its allegations in court.

The decision to pursue legal action comes after failed attempts to resolve the matter amicably. Twistcode is seeking a fair hearing at the Kuala Lumpur High Court on October 8, 2024, and hopes that the case will serve as a precedent for other local companies, especially startups.

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