Mobile operator Vodacom has confirmed it has been in talks with Democratic Republic of Congo (DRC) President Joseph Kabila and company shareholders regarding its embattled Congolese operation.
Although Vodacom spokesperson Richard Boorman has declined to comment on the outcome of these meetings, media reports suggest both meetings were geared towards solving the ongoing dispute between the shareholders and maintaining operational functionality of the company.
The mobile operator has been at loggerheads with Congolese Wireless Networks (CWN) regarding a funding agreement in place between the shareholders.
The dispute stems from a funding agreement between the shareholders of the DRC operation. CWN says Vodacom International has plundered Vodacom Congo of capital and accused the company of fraud.
The Congolese company also accused Vodacom of forcing its DRC operation to pay up to $180 million to satisfy loan agreements with “uncommercial terms and conditions”. In January, CWN threatened to take the matter to the courts in Kinshasa.
Vodacom lashed out at the accusations, saying CWN has made it impossible to find an amicable arrangement.
Amicable progress
Speaking recently at Vodacom's quarterly financial results presentation, Vodacom CEO Pieter Uys said the company would have a board meeting soon and would then head into arbitration at the International Trade Commission (ITC) court.
According to the reports, the situation has not been resolved, but all interested parties have agreed to continue constructive communication in the interest of maintaining operational functionality. Meanwhile, the dispute will still be brought to arbitration at the ITC court.
Uys stated at the time that parallel to this process, Vodacom would look at all possible options and engage with shareholders to discuss a way forward. “By the end of this year, we will know where we are in the Congo.”
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