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Former CEO sues Telecel Zimbabwe for $1mn

By , Journalist
Zimbabwe , 07 Jun 2013

Former CEO sues Telecel Zimbabwe for $1mn

Zimbabwe’s second largest mobile operator Telecel Zimbabwe is being sued $1 million by its former chief executive officer, Francis Mawindi, for allegedly “unlawfully” firing him.

Mawindi is demanding $1 million in damages or his reinstatement as chief executive officer of the mobile operator.

Mawindi was employed by Telecel in July last year, taking over from Swiss-born John Swaim.

Telecel is Zimbabwe’s second largest mobile operator with 2.5 million subscribers, according to the country’s communications watchdog. Egypt’s Orascom Telecom, which in turn is owned by Russia’s Vimpelcom, has a controlling stake in Telecel Zimbabwe.

“On March 26, 2013, he (Mawindi) got the shock of his life when he was served with a letter summarily and unlawfully terminating his contract of employment after attending a board meeting which, in his own view, later turned out to be a kangaroo court in Cairo, Egypt,” said Mawindi’s lawyers in papers submitted to the provincial labour officer for Harare.

Earlier reports had indicated that Mawindi had voluntarily retired.

However, claims have reportedly also emerged that there had been a fall-out between Mawindi and the Telecel board over strategy and operational issues.

Mawindi’s argument, as shown by papers by his legal team, is that he had a three year contract that was supposed to have run out in 2015.

Amid the backdrop of Mawindi’s firing, Egypt’s Orascom Telecom has said that it is in talks “over the terms and conditions” to renew Telecel’s operating license in the country in light of Zimbabwe’s indigenisation policies.

Zimbabwe’s indigenisation policies compel foreign firms to cede their majority shares to black Zimbabweans.

Zimbabwe’s government has further imposed indigenisation as a precondition for the renewal of the Telecel’s telecommunications license.

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