Vodacom loses appeal in DRC
Vodacom loses appeal in DRC
Vodacom faces having to shell out more than $21 million (R158 million) after losing its appeal against a lawsuit involving a former consultant in the Democratic Republic of Congo (DRC).
The DRC appeal court on Monday rejected the mobile giant`s stay of execution against an order to pay former African business consultant Moto Mabanga a sum of over $21 million.
Mabanga, of Nameco Energy, sued Vodacom in 2010 for unpaid fees following consultation and arbitration with Vodacom and the DRC in 2007 and 2008. He claimed $40.8 million as a “success fee” to be negotiated between himself and Vodacom in line with obligations carried out.
A judgment by the DRC court on 25 January ordered Vodacom to pay Mabanga for unpaid fees, plus costs incurred and interest. At the time, Mabanga said the issue had been laid to rest, with the court awarding him approximately $22.68 million. “Twenty million dollars 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.” The total cost to Vodacom would be approximately R177 million.
Vodacom yesterday issued an official statement on the issue, saying it had not yet received full judgment on the matter. “Once we have the relevant documentation, we`ll decide on an appropriate course of action.”
Mabanga says that, while he expects the cellphone operator will see fit to end the matter and pay him what he is owed, “considering their behaviour throughout the year”, he cannot assume that this will be the case.
“If they don`t pay out we will attach whatever we can in an attempt to recover what was awarded.”
He says the dispute has been a “tiring process” that began about four years ago and now he is leaving the ball in Vodacom`s court. “Now that they have failed their appeal, I hope they will finally settle the matter. They have been dodging it for so long now and I am curious to see what will happen.”