KUALA LUMPUR – German software provider Vienna Advantage GmbH (VA) and its Malaysian affiliate, Vienna Advantage Asia Sdn Bhd (VAA), have filed a RM61 million counterclaim against Cahya Mata Sarawak Bhd (CMSB) and its subsidiary Cahya Mata Intelligent Technologies Sdn Bhd (CMIT), citing internal failings in a long-delayed digital transformation project.
The original lawsuit, brought by CMSB and CMIT, named several high-profile defendants, including Cahya Mata deputy chairman Datuk Seri Mahmud Abu Bekir Taib, chief information officer and former executive director of CMIT Karl Vink @ Khalid Abdullah, Vienna Advantage managing director Atul Dua, former Senior General Manager of CMIT Izzul Abdul Kamar, as well as Vienna Advantage GmbH, and VAA.
In retaliation, the 3rd, 5th, and 6th defendants—Atul Dua, VA, and VAA—launched a counterclaim against the plaintiffs and Cahya Mata group managing director Datuk Seri Sulaiman Abdul Rahman Abdul Taib.
Court documents reveal that the dispute revolves around a group-wide Enterprise Resource Planning (ERP) initiative launched in 2018.
The documents also reveal that the dispute extends to several key business entities within the group’s digital transformation strategy.
Among others, an amendment to the project’s Statement of Work (SOW) was intended to expand implementation to Scomi Oilfield Ltd – Malaysia and Scomi KMC Sdn Bhd – Malaysia, alongside Cahya Mata Oiltools.
VA alleges that work on these specific oiltools projects was later unilaterally and unlawfully suspended by the plaintiffs as part of a broader campaign to frustrate the contract.
While CMSB and CMIT allege failures in the system, the defendants argue that “any delays or failures in implementation were wholly attributable to CMIT’s own incompetence, inexperience and delay.”
VA was selected after a year-long evaluation, which included site visits in the UAE and India by senior management, including former CEO Datuk Isaac Lugun and CIO Karl Vink.
However, VA claims the project suffered due to CMIT providing data “in a piecemeal, inconsistent, and incomplete manner” and failing to establish foundational policies.
Relations first deteriorated in late 2020 when CMSB unilaterally suspended the project. A Settlement Agreement signed on December 24, 2021 saw the plaintiffs agree to “fully and unconditionally release and forever discharge VA” from previous claims.
The project resumed in 2022 under new “Restart Agreements,” but VA alleges CMSB resumed non-payment and interference, resulting in accrued “idle time” fees.
The matter escalated during a meeting on March 21, 2024 with Sulaiman.
“Datuk Seri Sulaiman demanded that VA waive or absorb the idle time fees and threatened to shut down the Project if VA refused to do so,” VA claimed in court documents.
VA claims CMSB then engaged in wilful misconduct, including revoking access to critical information and cancelling meetings.
VA issued a Notice of Termination on August 5, 2024 and is seeking USD 13,478,815.24 (approximately RM59,796,381.39) in outstanding payments, EUR 273,581.00 (approximately RM1,282,306.09) in third-party consulting costs, as well as general, aggravated, and exemplary damages.
The defendants further accuse the plaintiffs of “abuse of process,” claiming the suit aimed to “circumvent and breach the valid and binding Settlement Agreement” and exert “collateral pressure” on VA.
The documents note that a module for the Group Finance Division successfully went live in July 2020 and was signed off by CMIT without adverse reports, while VA maintains its system is “enterprise-ready” and used globally, including in the USA and European Union.
Yesterday, Cahya Mata Sarawak confirmed receipt of the counterclaim from Vienna Advantage GmbH, Vienna Advantage Asia, and Atul Dua.
The three defendants are seeking declarations that CMSB and CMIT conspired to injure VAG and are liable for ERP-related payments.
They also allege the legal action breaches the December 24, 2021 settlement and constitutes an abuse of process. The counterclaim seeks specific performance to compel withdrawal of the original suit, an injunction to prevent further legal action, and claims for damages, costs, and interest.
“Cahya Mata and CMIT have instructed its solicitors to vigorously resist the counterclaim and file the appropriate defences,” Cahya Mata said in a Bursa announcement.
CMSB and CMIT originally filed suit against VAG, VAA, Atul Dua, and three others, including deputy chairman Dato Sri Mahmud Abu Bekir Taib, over alleged breaches of trust and fiduciary duties linked to the failed ERP system. On March 19, CMSB succeeded in blocking a bid by the defendants to strike out the lawsuit, allowing the case to proceed to trial, the Edge reported.
The ERP project was first awarded to VAG in July 2019, terminated in March 2021, and restarted in May 2023.
CMIT commenced arbitration in January 2025 following disputes, while the High Court dismissed an earlier attempt by the defendants to strike out the suit.
According to the Edge, company filings show that Abu Bekir and former CIO Karl Vink each hold 30% stakes in Vienna Advantage Asia, with VAG holding the remainder. – April 21, 2026