Vodacom International Limited (VIL) has settled its multi-million Rand dispute with its “political fixer” in the DRC (Democratic Republic of Congo), effectively ending all related legal action against the company in that country. This is according to a report in the City Press on 26 May 2013.<\/p>\n
Beyond confirming the settlement, Vodacom<\/a> was unwilling to disclose details – such as the amount paid, stating that the terms of the settlement were confidential.<\/p>\n Vodacom did not respond to a question by the City Press asking if it was appropriate to hide from shareholders a potential multi-million Rand payment.<\/p>\n The settlement was noted in Vodacom’s recent financial year 2013 results, in which is was stated: “The claim brought by Namemco Energy (Pty) Limited against VIL (Vodacom International Limited) was settled during the year”.<\/p>\n This news follows a saga in which VIL was initially sued for R396-million by Moto Mabanga, a “political fixer” who assisted Vodacom to enter into the DRC market by providing advice and assistance on economic, socio-political, and security conditions in the country.<\/p>\n This included navigating “government relations issues” and assisting the relationship between Vodacom and its DRC partner, Congolese Wireless Network, the City Press reports.<\/p>\n In March 2012, a DRC court ordered VIL to pay Mabangu R159-million. Vodacom refused, leading the court to order that VIL’s stake in Vodacom DRC be seized and auctioned off.<\/p>\n However, this auction was suspended pending the outcome of “certain legal proceedings”, Vodacom said in a statement, without giving further details.<\/p>\n Publicly, Vodacom representatives shared strong words about the legal case.<\/p>\n In October 2012, Vodacom CEO Shameel Joosub<\/a> said he did not anticipate Vodacom would be paying the claimed amount (R174-million), and that they had a strong case.<\/p>\n Vodacom spokesperson Richard Boorman<\/a> said that “there is zero legal justification for Mr Mabanga’s contractual claim and we challenge him to provide one.”<\/p>\n Vodacom will fight for DRC asset: Uys<\/a><\/strong><\/p>\nMore Vodacom and DRC news<\/h3>\n