KUALA LUMPUR (March 20): Cahya Mata Sarawak Bhd (KL:CMSB) has initiated legal action against its deputy chairman Datuk Seri Mahmud Abu Bekir Taib over alleged breaches of trust and fiduciary duties in relation to a failed enterprise resource planning (ERP) system under the company’s digital transformation project.

The lawsuit filed by Cahya Mata and its wholly owned subsidiary, Cahya Mata Intelligent Technologies (CMIT), also named CMIT's former chief information officer and executive director Karl Vink @ Khalid Abdullah, and CMIT's former senior general manager Izzul Abdul Kamar as defendants  

Software vendors Vienna Advantage GmbH and Vienna Advantage Asia Sdn Bhd were also named in the suit filed in the High Court in Kuching on Thursday, according to Cahya Mata's bourse filing.

The action comes two weeks after Abu Bekir himself sued Cahya Mata for allegedly being denied access to the company’s accounts despite his position as a director. He is seeking an order for the company to produce and open an inspection into its accounts, as well as those of five subsidiaries.

In Thursday's suit, Abu Bekir and the other defendants are accused of misconduct linked to the ERP implementation. The claims include breach of trust, breaches of fiduciary, statutory, and common law duties, as well as conflict of interest.

Cahya Mata contended that defendants were expected to protect the interest of the company and to not place themselves in a position of conflict.

The company and CMIT are seeking several legal remedies, including declarations that Abu Bekir, Khalid and Izzul, committed breaches of trust and fiduciary duties, as well as general and exemplary damages.

No hearing date has been set for the case.

Cahya Mata stated in the bourse filing that the lawsuit is not expected to have a material effect on its earnings or net asset per share for the financial year ending Dec 31, 2025. The company also does not foresee any significant operational impact arising from the legal action.

Shares of Cahya Mata closed unchanged at 99.5 sen, with a market capitalisation of RM1.07 billion.