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Cape Town - Telkom [JSE:TKG] filed a law suit in the North Gauteng High Court in Pretoria against former senior executive, Thami Msimango, in two separate claims totalling R60.3m.
It is alleging acts of recklessness and breach of contract arising out of the “super dealer agreement” between Blue Label [JSE:BLU] subsidiary African Prepaid Services and Telkom’s former Nigerian subsidiary‚ Multi-Links.
It said Blue Label had been contracted to distribute Multi-Links’ products in Nigeria.
Telkom cancelled the contract to reduce costs in its struggling Multi-Links business‚ which it bought for $410m in 2007.
By 2011 Telkom had lost R10bn due to the weak performance by Multi-Links‚ and it sold the unit that year to Helios Towers Africa for $10m.
The damages claim is based on what Telkom said was a breach of a duty of care and misrepresentations made by Blue Label at the time the agreement was concluded with Multi-Links in 2008.
However, Blue Label said in a Sens report that it was confident that it would successfully defend the claims made against the firm‚ its subsidiaries and representatives.
The new leadership at Telkom is dramatically cleaning its house of “legacy issues”, City Press reported on Sunday.
Telkom’s new CEO, Sipho Maseko, was appointed less than three months ago and is attempting to right what many analysts viewed as a sinking ship.
“Our key shareholders are frustrated, our customers are frustrated and I can promise that we will not repeat the same mistakes of the past,” said Maseko at the company’s annual results presentation on Friday.
- Fin24
It is alleging acts of recklessness and breach of contract arising out of the “super dealer agreement” between Blue Label [JSE:BLU] subsidiary African Prepaid Services and Telkom’s former Nigerian subsidiary‚ Multi-Links.
It said Blue Label had been contracted to distribute Multi-Links’ products in Nigeria.
Telkom cancelled the contract to reduce costs in its struggling Multi-Links business‚ which it bought for $410m in 2007.
By 2011 Telkom had lost R10bn due to the weak performance by Multi-Links‚ and it sold the unit that year to Helios Towers Africa for $10m.
The damages claim is based on what Telkom said was a breach of a duty of care and misrepresentations made by Blue Label at the time the agreement was concluded with Multi-Links in 2008.
However, Blue Label said in a Sens report that it was confident that it would successfully defend the claims made against the firm‚ its subsidiaries and representatives.
The new leadership at Telkom is dramatically cleaning its house of “legacy issues”, City Press reported on Sunday.
Telkom’s new CEO, Sipho Maseko, was appointed less than three months ago and is attempting to right what many analysts viewed as a sinking ship.
“Our key shareholders are frustrated, our customers are frustrated and I can promise that we will not repeat the same mistakes of the past,” said Maseko at the company’s annual results presentation on Friday.
- Fin24
