New Zimbabwe.com

Telecel dragged to court over US$749 900 debt

By Mary Taruvinga


AN Egyptian company rendering a variety of services to Telecel Zimbabwe (Private) Limited, ARPU Telecommunications Services S.A.E Limited, has dragged the former to court over a debt amounting US$749 900.

ARPU telecommunications is an Egyptian Joint Stock Company established under the laws of Egypt with commercial registration number 5268.

The company has filed summons with the Zimbabwean High Court seeking to recoup the amount which it claims has accumulated over years.

Court papers show that Telecel acknowledges owing the company but has failed to pay the amount.

According to the summons now before the High Court, on the 1st of August 2016, the company and Telecel entered into a Service Provision Agreement in terms of which the Egyptian firm provided Telecel with technical and infrastructure support to enable it to offer subscriber engagement value added services to its clients.

The salient terms and conditions of this agreement were that the plaintiff was to provide content in the form of subscription services to the defendants’ users through SMS alerting.

The company submitted that the services to be provided included sports services, religious services, information and entertainment services.

Telecel was obliged to allocate to the company a short code for each subscription service to enable it to supply the said content to users.

The local mobile telecommunications company’s users would receive tips, updates and prompts to sign up for services on a daily basis.

Telecel was obliged to ensure that the services and content was available to the subscribers 20 hours a day every week.

“The parties agreed that a monthly report will be prepared showing the amount of traffic each service received during the month and the subscription fees paid by the users,” reads part of the summons.

“The parties further agreed Telecel would pay to the Egyptian firm each month and in arrears, 30% of the total subscription fees paid to the defendant by the users of the content provided by the plaintiff,” the summons read.

Such payment was able to be made within 30 days of Telecel receiving the invoice.

“In accordance to the agreement between the parties, presented monthly invoices to the defendant for 30% of the total subscription fees paid by users during each month which invoices the defendant was obliged to pay within 30 days of receipt.

“In breach of the terms and conditions of the agreement entered into by the parties as aforementioned, the defendant failed to make full payment of each invoice within 30 days of receipt of each invoice which resulted in a total of US$749 900 being due and outstanding to the plaintiff,” ARPU said in its declaration.

The company added: “The defendant acknowledged its liability to the plaintiff in the sum of US$749 900 but has simply failed and or refused to make payment despite demand by the plaintiff.

“Wherefore the plaintiff prays for judgement against the defendant for payment of US$749 900 together with interest thereon at the prescribed rate calculated from the date of demand to the date of payment in full.”

The case is still pending.