Vodacom is being sued for R200 billion

Vodacom is being sued for $14 billion (R200 billion) in the Democratic Republic of Congo by Alieu Conteh, according to a report by Bloomberg.

Alieu Conteh is the controlling shareholder of the company’s minority partner in the country, who claims Vodacom’s “international unit helped to undermine the businessman’s position as a statutory director of Congolese Wireless Network, which owns a 49 percent stake in Vodacom Congo”.

“Conteh’s action in the Commercial Court of Kinshasa/Gombe also seeks to overturn a court decision stripping him of his directorship,” stated the report.

“Vodacom International Limited is opposing Mr Conteh’s claim, which we believe is unfounded and unsubstantiated,” Vodacom’s Tshepo Ramodibe told Bloomberg.

“Our view is that Mr Conteh’s action is primarily a challenge to the decision of the Commercial Court of Kinshasa/Gombe which removed him as a co-manager of CWN.”

The legal action in the DRC follows competitor MTN’s troubles in Nigeria, where it faces a possible $5.2-billion fine from the country’s telecoms regulator.

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Vodacom is being sued for R200 billion