Telkom sues Blue Label Telecoms for R5-billion


While Telkom’s Multi-Links deal in Nigeria is no more, the company is far from done with tying up loose ends. During Telkom’s annual results presentation in Johannesburg on Friday, they state-owned entity revealed that it has filed a suit of $528m (R5.2-billion) against Blue Label Telecoms for a breach of contract.

Telkom has filed a suit of $528m (R5.2-billion) against Blue Label Telecoms (image: file)

Telkom alleges that Blue Label Telecoms is in “breach of a duty of care and misrepresentations made by Blue Label” according to a deal that was signed in 2008 between Telkom’s former Nigeria subsidiary, Multi-Links and Blue Label subsidiary African Prepaid Services.

Adding to the suit, Telkom is also going after an unnamed former senior executive, demanding $6-million for “damages suffered as a result of certain irregularities”.

Telkom explained that $1-million of the suit against the executive stemmed from Telkom being “compelled to pay to a third party as a consequence of the defendant acting outside his authority by signing a financial guarantee binding Telkom jointly and severally for the obligations of Multi-Links”, while the other $5-million “arising from the defendant’s conduct while at Multi-Links in authorising a telecoms operator to earmark and make a payment of $5m to a third party instead of to Telkom”.

*Developing story*

Charlie Fripp – Consumer Tech editor