Mobile telephone operator Vodacom Group and its minority shareholder in the DRC will enter into arbitration proceedings under International Chamber of Commerce (ICC) rules in Brussels, the South African company said on Wednesday.
Vodacom owns 51% of Vodacom Congo while Congolese Wireless Networks (CWN) owns 49%.
CWN has alleged that Vodacom owes it around $170-million, according to a complaint filed late last year with the DRC’s attorney general.
Vodacom has refuted this claim.
Following a Vodacom Congo shareholders’ meeting in Johannesburg on Wednesday, the Vodacom Group said it had decided to refer the
matter to ICC arbitration.
“The shareholders failed to reach an agreement on a number of issues including capital restructuring that would support the continued growth of the business.”
The Vodacom Group added that it had so far provided all the funding for Vodacom Congo at commercial rates that were explicitly agreed to by CWN.
“This funding has allowed Vodacom Congo to build infrastructure that connects more than 3,5-million Congolese and the business now provides direct and indirect employment for more than 6 000 people,” Bob Collymore, Chief Officer Corporate Affairs said.
He added that the Vodacom Group firmly believed in the potential of the business in the DRC and believed that the interests of Vodacom Congo’s employees, its customers and the DRC as a whole were of paramount importance.
“We stand ready to fund further expansion and are hopeful that the arbitration process will bring a positive result,” Collymore said.
“Arbitration proceedings will be lodged under ICC rules in Brussels with immediate effect,” he added.