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Vodacom rejects attempt to attach DRC assets

Vodacom rejects attempt to attach DRC assets

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17th December 2015

By: News24Wire

  

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JSE-listed Vodacom has rejected an attempt to attach its assets in the Democratic Republic of the Congo (DRC) amid a legal dispute.

The case relates to Vodacom DRC being sued for removing a manager in the country.

“I have received the court order where my company [Namemco Energy] has attached Vodacom Group shares in Vodacom DRC, dated October 2015. The DRC Commercial Court enforcement documents which ordered them to pay me the sum of $18-million by the end of December has been served on Vodacom DRC by the court bailiff,” plaintiff Moto Mabanga told Fin24.

However, Vodacom argued that the matter is ongoing as the company is contesting a payment award. The operator had previously labelled a $14-billion demand as “without merit”.

“Namemco is seeking to attach Vodacom shares in Vodacom DRC. Vodacom International Limited (VIL) and Vodacom DRC are contesting the validity of this attachment order. The matter is pending before the courts in the DRC,” Vodacom corporate affairs executive head Tshepo Ramodibe told Fin24.

Mabanga warned that Vodacom DRC shares would be sold by the end of the year if the company does not make a payment.

“To date Vodacom has not made payment. My attorneys are processing the sale of Vodacom DRC shares, if the money is not paid by the end of the year.”

However, despite a Commercial Court judgment, Fin24 understands that the matter is being argued in the international court, rendering local judgments premature.

“In parallel, the same matter and similar issues were referred in the arbitral tribunal under the aegis of the International Chamber of Commerce ('ICC'), Paris. The ICC ruled against Namemco, and issued an award, dated November 3, ordering Namemco to pay VIL over $1.7-million in damages, exclusive of costs, for breach of the settlement agreement,” said Ramodibe.

News24.com

Edited by News24Wire

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