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Econet threatens lawsuit

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Zimbabwe’s largest mobile telecommunication company, Econet, has threatened to sue the Zambian Embassy for failing to pay a $6 000 bill.

According to a letter written by Econet lawyers to the diplomatic mission, the telecommunications provider has been trying unsuccessfully to make the Zambians pay the bill since July.

“On July 13, 2010, we sent you the itemised bill as per your request. Could we now have settlement of the sum of $6 010,84 due and owing by your client in respect of the capital and our costs?” the letter reads.

Econet is increasingly resorting to legal action to recover debts from its customers and has also taken a leading clothing company, Holfield Investments, also known as House of Kumali, to the courts.

Econet reportedly entered into an agreement with Holfield Investments in which the firm was to provide telecommunications service for which payment would be effected within 15 days of monthly invoices.

“On the 3rd of June 2009 the plaintiff (Econet) and defendant (Holfield Investments) entered into an agreement in terms of which the plaintiff supplied the defendant with telecommunications services, it having been agreed that defendant would pay for such service within 15 days of the dispatch of the monthly statement,” the declaration stated. Econet says that the clothing company had failed to settle the debt.

“A statement was sent out by plaintiff (Econet) to defendant (Holfield investment) dated
November 1, 2009, for the sum of $4 336, 97. Debtor paid $500 on July 23, 2010, and the sum of
$3 836,97 has remained unpaid despite demand,” it states.

“Wherefore plaintiff prays for payment of the sum of $3 836,97 interest thereon at the rate of 4% per month with effect from June 30, 2010, to date of payment, costs of suit on the attorney-client scale,” it says.

Moonlight Funeral Assurance is another debtor to which Econet had to send summons to recover its money. Econet has also taken the president of the Chiefs’ Council, Chief Fortune Charumbira, to court for unpaid bills.

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