Telkom seeks $6 million from former MD
Telkom has instituted legal action against a former senior executive of the company, Thami Msimango, in two separate claims amounting to $6 million (R60.3 million), alleging acts of recklessness and breach of contract.
Telkom has filed a lawsuit at the high court in Pretoria.
The legal action is part of a summons Telkom has issued out against JSE-listed Blue Label Telecoms and four other parties claiming R5.21 billion in damages relating to the Multi-Links fiasco.
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.
Blue Label was contracted to distribute Multi-Links’ products in Nigeria, however Telkom then cancelled the deal as part of a cost saving effort.
Telkom lost over R10 billion over 50 months on its disastrous acquisition of Multi-Links, and it was forced to write off billions before cutting losses in a fire sale to an affiliate of Helios in 2011.
Telkom has issued the claim against Blue Label Telecoms, subsidiaries of Blue Label Telecoms and individuals including Msimango, seeking US$528,071,116 (R5.21 billion).
Msimango, who is no longer employed by Telkom, had been chief of global operations, and was appointed MD of Telkom International and Nigerian based subsidiary Multi-Links in 1 April 2009.
Under “claim A”, Telkom is looking for payment of $1 million, which it says it owed and paid to PCCW Global for a voice service agreement signed by Msimango, which Telkom adds, was in breach of his contract.
The second claim relates to a payment of $5 million by BLS Telekom to Multi-Links in 2009, despite no authorisation by Telkom. Multi-Links disputes receipt of the amount, according to court papers filed by Telkom.
In both instances, Telkom claims that Msimango acted “wantonly, recklessly, arbitrarily or capriciously” and acted “without exercising a proper discretion”.
Blue Label Telecoms says it will challenge the claim brought against its subsidiaries by Telkom.
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