Blue Label hits back at Telkom claims
Blue Label Telecoms says it will challenge the claim brought against its subsidiaries by Telkom, seeking over R5 billion in damages.
Telkom announced in its financial reporting on Friday (14 June 2013) that it had issued a summons against Blue Label Telecoms and 5 other parties looking to claim R5.21 billion in damages relating to Multi-Links.
The claim relates to alleged damages suffered by Telkom arising out of a super dealer agreement (SDA) concluded between Blue Label subsidiary, Africa Prepaid Services (APSN) and Multi-Links.
However, Blue Label Telecoms says that the move was made without notice to APSN in an effort to stay arbitration already taking place in which Blue Label is claiming payment of US$457 million against Multi-Links.
According to Blue Label, the arbitration between Multi-Links and APSN was due to commence in November 2012 but was postponed, due to reconvene in February 2014.
“Multi-Links has applied to the High Court to stay the arbitration hearing pending the outcome of an action for damages which Telkom and Multi-Links have instituted against Blue Label, APS, APSN and certain individuals, including a former senior executive of Telkom in the High Court for payment of an aggregate amount of US$724 million,” Blue Label said.
Blue Label said the application is being opposed by APSN.
APSN has also filed an application in the High Court to set aside Telkom’s order and the purported attachment of APSN’s claim and order for costs against Multi-Links.
This application is due to be heard on 2 July 2013.
“The Board is confident that the attempts which have been made to frustrate the continuation of the arbitration proceedings will be overcome and that the claims made against Blue Label, its subsidiaries and representatives will be successfully defended,” Blue Label said.
“As the arbitration and legal proceedings are sub judice, no further statements may be made about the merits at this stage.”
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