In the latest development, CTT is counter claiming from Weida's unit Weida Works Sdn Bhd for the construction of the towers and also RM131.84mil as wrongful interest imposed by Weida.
To recap, Weida Works and CTT inked a JV deal on June 22, 2005 and first supplementary JVA on March 23, 2006 to undertake the telecommunication infrastructure projects in Sabah.
Under the JVA, Weida Works was to fund and build telecommunication towers in the projects.
CTT would then secure the tower sites and licence for the towers on these sites to mobile telecommunication operators for licence fees.
CTT would then share such licence fees income received from both the original operators and new operators with Weida at an agreed ratio.
On May 23, 2017, Weida said a notice of arbitration which was issued and filed with the Kuala Lumpur Regional Centre for Arbitration (KLRCA).
Weida Works alleged CTT breached the JVA for not paying Weida Works its entitled share of all licence income from the new operators for RM23.43mil which was Weida Works’ share.
It had also alleged CTT had breached its fiduciary duty to Weida Works under the JVA. This had caused interalia loss of business opportunities pursuant to a licence agreement entered into between CTT and the original operators as well as damages (including aggravated and exemplary damages), interest; and costs.
Weida Works had filed its points of claim on Jan 3, and CTT had filed its reply on March 5, 2018.
In the latest development, Weida said CTT’s 2018 counterclaim sought to declare the said JVA was not binding and/or void in law.
It also said CTT sought refunds of all monies received from CTT save for telecommunication towers construction costs as well as to pay RM131.84mil being wrongful interest imposed by Weida Works with pre award and post arbitration award interest and costs.
“This is despite CTT obtaining the full benefits of the JVA since its inception in 2005 till current date.
“The arbitration has been fixed for hearing between July 18, 2018 to Aug 21, 2018.
Weida Works’ solicitors are of the conservative view that Weida Works has basis for the arbitration while in the current circumstances as known to Weida Works’ solicitors todate, CTT seems to have no basis for its allegations in its reply and counterclaim,” said Weida.