South African cellphone network Vodacom will still be sued in the Nigerian High Court for inducement of breach of contract, plaintiff Econet Wireless International (EWI) said on Thursday.
A company with a similar name — Econet Wireless Nigeria (EWN) — was Vodacom’s Nigerian partner until Monday, when the South African company abruptly terminated a five-year agreement and dropped plans to invest $200-million in EWN.
”The withdrawal of Vodacom and the dismissal of Vodacom deputy CEO Mr Andrew Mthembu have no bearing on the case, which is currently under way in the Nigerian High Court,” said EWI chief executive Strive Masiyiwa in a media statement.
”The dismissal of Mthembu does not absolve Vodacom.”
Masiyiwa said the next hearing in the matter is set for June 17 when the judge will rule on an application by Vodacom for leave to file further affidavits.
Masiyiwa said the background to the case is that when Vodacom first approached EWN to buy shares in that company, he personally went to see Mthembu to advise him that there already existed an agreement between EWN and EWI for EWI to acquire shares in EWN.
”Mthembu made an undertaking that Vodacom would not get involved if he received proof of the agreement between EWI and EWN,” Masiyiwa said.
Masiyiwa then made Mthembu sign a confidentiality and non-disclosure agreement.
”It was a shock to learn that Vodacom subsequently made an almost identical counteroffer for the Nigerian company.
”Although Mthembu was the principal player in the inducement by Vodacom, he did so in his capacity as deputy CEO of the group. We believe he will be called as a witness and will be compelled to come to Nigeria and explain Vodacom’s actions, otherwise we will expect Alan Knott-Craig [Vodacom’s chief executive] to appear in Nigeria as a witness,” said Masiyiwa.
EWI believes it has suffered damages in excess of $1,8-billion as a result of the decision by the Nigerian shareholders to set aside the agreement with EWI and accept an offer from Vodacom. — Sapa