Econet in bid to recover $12m from NetOne

THE country’s largest mobile phone operator Econet Wireless has approached the courts once again in a bid to recover $12 million owed by State-owned mobile company Netone in interconnection fees.

Staff Reporter

In papers filed at the High Court in May, Econet wireless wants Netone to pay its outstanding debt in interconnection fees.

“On or about 13 August 2004, plaintiff (Econet) and defendant (Netone) entered into an interconnection agreement in terms of which plaintiff provided defendant telecommunications services including voice traffic and leased circuits and these services would be provided for a fee,” reads Econet’s declaration.

Econet said: “In the period commencing June 2010 to August 2012, plaintiff was entitled to payment of $12 171 048, 64 being interconnection fees due and owing to plaintiff by defendant, which amount, despite demand, defendant has refused, neglected and or otherwise failed to pay.

“Wherefore the plaintiff is entitled to an order directing defendant to pay the sum of $12 171 048,64.”

The company was also demanding interest at the prescribed rate from the date of service of summons to the date of full and final payment.
The two companies, Econet and Netone, operate under an agreement that allows traffic to flow between their networks.

Econet has over the past years turned to the courts in a bid to recover its millions owned by other mobile companies.

Individuals, companies and embassies have not been spared.

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34 Comments

  1. Taiona net 1 kufonesa vanhu mahara tikati mariyawanda (Nzuwa) nyamba Vose vanozvirova matundundu mumabhawa, enda kumba kwavo unoona pavanorara.

  2. We are not used to settling our debts. You are potraying Econet as an evil Shylock. We should all learn to settle our debts !

  3. Another Wazara………..

  4. It’s not a mystery why the national debt has ballooned and continues to do so. People take loans and refuse to pay back, eg buyanga saga, airzim n workers (ie loaned labour by workers n refuse to pay them), chefs take loans from banks n don’t pay back(boka’s bank, kingdom, stanchart, etc). If u can’t afford it don’t live the life. Learn to be content with what u have. Zesa should be promoting alternative energy sources coz we simply can’t afford electricity from abroad. Eskom promotes use of gas and solar coz they know they can’t meet the needs of all of sa. Rather than importing power on credit like us.

    1. Well said

  5. net-one ngayi katwe….yakaora sistereki

  6. well said , ko why borrow zvaunoziva kuti u cant afford ,in the end u mek pple look lyk vanonetsa vakuda mari dzavo

    1. Netone inoda zvemahara kana zvakapfava kunge honye kana shiri sevakoma vayo vanoti :NRZ,GMB nemamwe maparastatals akaita seZesa nokuti anotungamirirwa naretired brigadier wehondo saka zvose zvinoitwa ndezvekutomutsana chete nokuti havana ruzivo rweBUSINESS asi kudya mari kunge shiri kikikikiki.Handiti Econet irikuda mari yayo unonzwa mumwe will politicize the whole issue since we are towards election.They have since forgotten that Joshua Nkomo is the man who facilitated or helped our own Strive Masiiwa to build this/his empire to be where it is today so Netone pay up or ship out period!

  7. Please Econet while we sympathise with your predicament do not disconnect the interface between yourselves and NetlOne (sezvamakamboita. It is us the subscribers who suffer. Its not NetlOne’s fault. Zanu PF plunders their profits (as they did and still do with all parastatals.I happen to know Mr Reward Kangai (the chief of NetOne) from long back, a professional engineer and gentleman. His job is made difficult by ZanuPF

    kangai from years back

    1. Please Mr Johno i do not see any business sense in what you are saying for Econet needs its money and should not continue suffering for Zanu’s gross mismanagement and above all Netone is a competitor to Econet and as such should not be a charity case inongoda zvemahara like Zanu.My advice to you is to get an Econet line that will be a lasting solution my dear because in as much as Econet sympathises with Netone subscribers,it also has expansion programmes to us genuine Econet subscibers and that is a fact and it should help its subscribers first than a competitor.Thats PROVOCATION…..what is being done by Telone.People were sleeping on their mobile phones due to lower tarriffs but knowing that you owe Econet 12 million dollars plus he-ey!It boggles one’s mind and i do not see the logic behind all this.Shame on you Netone.

      1. No no no, econet yakanyanyo womera stereki, every one must buy net one

        1. @Sly

          I agree with you 120%. I think even Strive prefer to use Telecel or Netone to his econet.

  8. management at all parastatals vane udyire chavo kuda kufutisa homwe dzavo basi vasingatarisi kut vashandi nevamwe maservice providers vapiwa here zvakakoderana navo. proffessionalism mumaparastatals hamuna zvamuchose. honai kwazvavari uku. dai econet yangodambura interconnection yacho tione kut zvogumira kupi.

  9. Rejoice Ngwenya

    uMurozvi ukhulume kahle. In another part of this paper, we read of a ZANU-PF guy called Nyabadza who owes almost 500 thousand pounds! Why did Net One enter into an agreement they cannot fulfill? It’s like Gono [when he was de facto prime minister] taking imali yema mines, NGOs etc hoping to pay it back somehow. Bantu veZimbabwe, let’s not borrow [even from IMF] what we can’t pay back. I advise ECONET to improve their service as well, but they should simply disconnect until Net One pay. What interconnection?

  10. Chief Accountant

    Where can I get Financial Statements for parastatals?

    1. @Chief Acountant- You have a rather long wait my friend..lets say, as soon as your ears learn how to chew gum!

  11. Ngava bhadhare zvikwereti

  12. netone is offering zimbabweans a community service please let them be.

  13. We are a sovereign nation, we do have debt in our culture. The word debt is as foreign as the word (well phrase) regime change agenda. This word was imported by stoogies of the west in order to portray real patriotic companies like Net 1 in bad light. If these agents think they will see that debt settled they have another thing coming. We shall not bend our rules (of sovereignty) for a few companies that have hidden agendas. If they really wanted to get the money they should come as partners not to plunder our god given resources such as Net 1. We know Net 1 has been very patriotic as it does not ask its clients to pay for rendered services. Is there any that can be more patriotic. Besides the owner of Econet is not a Zimbabwean but has dual citizenship. In order for Net 1 to pay, the owner should renounce his other citizenship and get a new ID card as the 1 he “had” has been expunged.

    1. What has citizenship has to do with business nhai iwe Lovemore??Don’t operate your business nechigandanga wena ndokusaka muchifoira and look now all parastatals are next to zero[its as good as no operation taking place].Dual citizenship is now in our new constitution and by now i thought you read it.Ignorance of the law is not defence.Mutumwa Mawere won his case a few weeks ago and that case was about this dual citizenship you are talking about and i doubt very much if you came across this article or maybe it wasn’t in the Herald i guess.

    2. Boy, you are good! Yes, you are that good. I could not stop laughing. Yes this is part of Econet regime change agenda!

      1. @Lovemore- the above statement is referred to you not Joseph…you sir, just made my day!

  14. What happened to Ecolife ?

    1. All I can say is ” you are receiving 0% discount for this call”. Thank you.

  15. netone ndayishayira mupanda veduwe,yo call is retricted,yo call is retricted,network busy,error in network connection thats all im getting from netone.apo yoti kusabadara zvikwereti

  16. WILLARD MUBVUMBI

    My opinion is, since net one is govt owned, why not these two, the plaintiff and the defendant get into a consensus, whereby econet halts paying corporate tax for some yrs?

    1. tinofa wangu ngekuti iyo econet ndiyo iri pamusorosoro pekubhadhara tax iyo pay shoma ye servants inozobvepi

      1. @Kidza- Many thanks for this clear headedness!

  17. Mhinduroiripo

    Wiri i admire the way you think. But dont forget any gorvenment that comes after this coming election (zanu pf included) may not be responsible for that mercy which was caused by these two partiners. Econet knows very well about the eventuality of such deals. With any of the parastatals. All in all 12 million or anything of that sort is not a big deal in telecom bussinesses. Its just a matter of how to pay back. Zviriseyi mubvumbi. Ko seyi zi-zi. Ngati tambeyi tose pa blue.

  18. WILLARD MUBVUMBI

    @ Mhinduroiripo, ndiri bho. Ndichazotanga kukudenhayi vanhu ve De mbare time time. Kikiki…

  19. Econet inotaura zvechikwereti kana net1 yakupa ma promotions ane musoro.thanx net1 u made econet provide buddie zone those days.

    1. Kupa chikwereti uchikwikwidza nemunhu waunechikweeti naye here nhai wangu Nhopi….do you see the logic behind this???Hakusi kudenha here uku??

  20. The following is a parody of an interview with one of the captains of industry in a country between two great rivers:

    Question: People say the reason for most of the malaise blighting industry is the high salaries and benefits the top brass in the land pays itself. In fact they say there is no relationship whatsover between what they pay themselves and what they produce on the ground.

    Answer: Paying selfs? That is ridiculous, anyway, this is the thanks we get for running the companies single handed with inexeperienced staff due to the brain drain. Our counterparts in SA are getting twice what we get here. So those who think USD 50 000 per month should read widely. My counterparts in SA working with experienced staff I trained here gets thrice and gets to spend thrice the time I spend on the golf course…

    Question: But your company makes a fraction of what the SA companies you mention make? In fact your company has been making losses endless in addition you have the latest mercs in your garage, having bought the one you used for the past two years sold to you at a discounted book value. Shouldnt you sell these to mitigate your working capital problems?

    Answer: Exactly and look no further than the government which has flooded the country with cheap products. As for the Merc, ask the board about why they decided to buy this new car. My understanding is that it enhances value of company assets.

    Question: Really? Couldnt the funds have been used to repair your boiler which has been comatose for ages now? Why can you not compete with goods coming from thousands of kilometers away

    Answer: Simple, most of those companies you mention have a stonger capital base for which they can carry these discounts and they dont pay duties etc..As for the boiler, the company that used to supply us with spares packed up now we are being forced to rely on semiskilled people to fix it..and investing USD 5 000 in a new one in this uncertain enviroment is unproductive..we will just have to make do with it for the mean time.

    Question: So what are you doing as the chief to mitigate these losses?

    Answer: That isnot my province, that is for government… Yah, ask government. Not that they too have a clue what needs to be done but hey they pretend to have all answers to everything, so yah, ask them.

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