Whereas Airtel’s reputation in Rwanda is unprecedented after buying out Tigo Telecom, things are not good for Airtel Across neighbouring Uganda.
An unrelenting broker may lead to the collapse of Airtel Uganda following an ongoing court battle in which he is demanding for over $3.7million worth of compensation.
Bharti Airtel Limited has been sued for allegedly failing to pay commission worth more than $3.7million to a businessman who brokered the sale of Warid Telecom to Airtel.
The broker Wissam K. Fawaz dragged Airtel to a commercial court for non-compliance with terms of agreement in this deal.
Fawaz contends that $3,729,423.98 is 2% of $186,471,199 the value of Warid telecom’s assets in Uganda that were acquired by Bharti Airtel Limited.
Through his lawyers, Fawaz also claims for the interests at a rate of 10% per year from May 2013 till full payment, general damages and legal costs incurred.
Court documents indicate that on January 3 this year, Bharti Airtel Limited was summoned to file its defence within 15 days upon receipt of the complaint.
Meanwhile, on January 5th, Airtel Uganda Limited wrote to the lawyers of MMAKS Advocates declining service of court documents, because the company is neither an appointed agent of Bharti Airtel Limited nor party to the court proceedings nor indebted to Fawaz.
In the letter signed by Dennis Kakonge on behalf of legal and regulatory director Bharti Airtel Limited, advised that service of court documents be made directly to the accused party.
“For the avoidance of any doubt, the stamp of Airtel Uganda Limited that was appended to the summons and court pleadings was appended for the purpose of receiving the documents to access the nature of the claim but shall not construed as acceptance of service by Airtel Uganda Limited and for the avoidance of doubt is hereby cancelled,” reads part of the letter.