Vodacom ordered to pay R177 million
South African mobile phone operator Vodacom has been ordered by a Democratic Republic of Congo (DRC) court to fork out nearly R177 million in unpaid fees. The fees stem from an agreement between Vodacom and Congolese Wireless Networks (CWN), which ended in a dispute.
Vodacom has been ordered by a Democratic Republic of Congo (DRC) court to fork out nearly R177 million (image: file)
According to court documents, Nameco Energy’s Moto Mabanga consulted and did arbitration work between Vodacom and Congolese Wireless Networks in 2007 and 2008. While he earned almost R15-million, he claimed a further R320-million as part of a “success fee”, which was defined in consultancy agreements between Nameco Energy and Vodacom International.
Mabanga decided to approach the High Court in South Africa, after “everyone at Vodacom” evaded him in regards to payment, but soon learned that Vodacom was planning to sell its 51% shares in the DRC.
“So I had no choice but to take the matter to court in the DRC. According to my agreement, DRC law applies in the case and the court accepted my claim.” The matter has now been handled, with Mabanga happy about his successful $22 million claim.
“$20 million was awarded to me for unpaid fees, $1 million for interest and a further 8% of the $21 million ($1.68 million) for costs incurred.” That brings Vodacom’s total payment to around R177 million ($22 million).
However, Vodacom spokesperson Richard Boorman says that the matter hasn’t been finalised yet. “We would clearly have material objections to any judgment by a DRC court in which a monetary award was granted to Nameco, while the contractual dispute is currently being heard in court in SA, which has jurisdiction on the issue.”
Charlie Fripp – Acting Online editor