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DRC court orders Vodacom to pay up

Jan 27 2012 09:10 Reuters

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Johannesburg - A court in the Democratic Republic of Congo has ordered Vodacom Group [JSE:VOD] to pay at least $21m in unpaid fees to a former consultant, Business Day newspaper said on Friday.

Vodacom, a unit of Britain's Vodafone, has been locked in a long-standing dispute with its local partner in the DRC, Congolese Wireless Network. Vodacom said in 2010 it was exploring options for the unit, which could include a sale.

The consultant, who worked with Vodacom in its negotiations in the DRC, had originally sued the company for a $40.8m "success fee", Business Day said, adding the court awarded about half of that.

Vodacom spokesperson Richard Boorman said the company had not received any judgment.

“We would clearly have material objections to any judgment by a DRC court in which a monetary award was granted... while the contractual dispute is currently being held in court in South Africa, which has jurisdiction on the issue.”

Congolese Wireless Network in October filed court papers to block Vodacom from selling its 51% stake in the DRC business.

The two companies have been in arbitration after disagreeing over fees from the joint venture.

 
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