Econet sues Zimbabwe

Picture by: Pius Utomi Ekpei / AFP

Picture by: Pius Utomi Ekpei / AFP

Published Jan 15, 2016

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Harare - Zimbabwe's largest mobile phone company, Econet Wireless, has been to the Harare High Court seeking an order to force the government to pay it about more then R2 billion in damages.

This is for losses it claims it suffered after it was forced by the government to reduce its tariffs in 2014.

Econet also claims other network providers, including the government's Telone and a third operator, Telecel, were not forced to pay renewal licence fees before tariffs were reduced as Econet was.

Econet estimated the renewal fees due by the other operators were more then R1 billion each.

In the summons filed at the High Court last month, the mobile network firm said that, apart from the more than R2 billion damages in lost tariffs, it was also seeking an order compelling the Postal and Telecommunications Regulatory Authority of Zimbabwe, (Portraz) to secure license renewal fees from the other two operators.

According to Econet, sometime in May 2013, (when the government was looking for finance for the upcoming elections) it concluded an agreement with Potraz and the government where it says it was agreed that Econet would be issued with a new license on the same terms and conditions as its old licence.

Pursuant to the license renewal agreement, Potraz issued Econet with a licence dated July 10, 2013 in terms of which Econet was entitled to charge and collect tariffs from its customers until July 2018.

It claims the reduction of fees in 2014 was illegal because it contradicted this agreement. Econet was set up in 1993 by exiled Zimbabwe businessman Strive Masiyiwa after he left government service.

He has had to go to court many times to challenge the government, which tried to stop him setting up the company. He took on former vice president Joice Mujuru who was the minister responsible for telecoms at that time.

In 2014 Mujuru was sacked from her post and from Zanu PF after first lady Grace Mugabe said she was plotting to assassinate President Robert Mugabe, charges she denied. Econet is well known for its philanthropic work in Zimbabwe.

Masiyiwa was at one time a financial donor to the opposition Movement for Democratic Change, MDC, which was established in late 1999, and he helped fund The Daily News, a privately-owned newspaper which took on the vast Zanu PF-controlled state media.

AFRICAN NEWS AGENCY

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