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 judgement on Wednesday 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.” The total cost to Vodacom is approximately R177 million.
Vodacom spokesperson Richard Boorman says the operator has not yet received judgement on the matter and as such it would be “difficult to comment in detail”.
“We would clearly have material objections to any judgment by a DRC court in which a monetary award was granted to Nameco, while the contractual dispute is currently being heard in court in SA, which has jurisdiction on the issue.”
In October last year, CWN filed court papers to block Vodacom from selling its 51% share in the DRC business.
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