Tuesday, 07 February 2012 00:00
Written by Bonnie Tubbs
VODACOM has been ordered by a court in the Democratic Republic of Congo (DRC) to pay over $22 million (about R177 million) in unpaid fees to a former consultant. The judgment follows a protracted dispute between SA’s first cellular operator and its DRC partner Congolese Wireless Networks (CWN) over fees at their joint venture.
According to African business consultant Moto Mabanga, of Nameco Energy, he was embroiled in consultation and arbitration with
Vodacom in the DRC during 2007 and 2008. He earned $2.8 million, according to an affidavit he submitted in 2010. Mabanga subsequently claimed $40.8 million as a “success fee” to be negotiated between himself and
Vodacom, in line with obligations carried out as defined in consultancy agreements between Nameco Energy and
Vodacom International.
Mabanga says, due to “everyone at
Vodacom” evading him, he presented the claim to the High Court in SA, but felt he was being stonewalled by players in SA when he found out that
Vodacom planned 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.”
Mabanga says the issue has now been laid to rest, with the court awarding him approximately $22.68 million. “$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.”
Vodacom spokesperson
Richard Boorman says the operator has not yet received judgment on the matter, and as such, it would be “difficult to comment in detail”.