Econet arbitration over by year-end

Johannesburg, 16 Aug 2004

Econet Wireless International (EWI) expects the arbitration process over its shareholder dispute with Vee Networks (formerly Econet Wireless Nigeria) to be completed by the end of this year.

EWI`s CEO, Strive Masiyiwa, told ITWeb in an interview on Friday that the arbitration process is going well, with the two organisations` lawyers currently exchanging the necessary papers.

"This is all part of the process and the progress on this issue has been steady. In fact, as I understand it, it is moving as fast as an international arbitration process can go," says Masiyiwa.

The initial dispute between the companies came after EWN`s shareholders accepted an offer from Vodacom to purchase equity in the company, despite EWI having pre-emptive rights to purchase the shares.

The case is being heard before a three-member tribunal at the International Court of Arbitration in Paris, whose decision in regard to the case is final, with no room for appeal.

"The arbitrators` decision will be final, meaning that this is basically a winner-takes-all process - which is exactly the way I like it," says Masiyiwa.

He believes that people doing business in Africa should study this case, as there are a number of lessons that can be learned from it.

"A lot of people thought we were crazy when we allowed for the option of taking shareholder disputes to the UN Court of Arbitration," he says.

"However, the reasoning behind this was that Nigeria is a signatory to the UN charter, so the government will quickly enforce any ruling made by the international body.

"We wanted something that would definitely bind the government into enforcing a ruling, and we wanted a process that would be fast-tracked and be final and binding," says Masiyiwa.

Vee Networks could not be reached for comment.