Zimbabwean state-owned telecoms company NetOne has initiated legal proceedings against its reseller FIRSTEL Cellular Zimbabwe for allegedly failing to pay USD8 million in incurred invoices, AllAfrica reports. The dispute arose from a service provider agreement which mandated FIRSTEL to subscribe users on behalf of NetOne; subscribers then make payments to FIRSTEL, which in turn would remit the payments to NetOne, less its commission. However, between January and March 2009, when the country introduced the multi-currency system, most clients who bought contract lines through FIRSTEL failed to settle their bills because of the change-over from the local currency to US dollars. The High Court ruled that FIRSTEL was liable to pay the entire amount it had failed to collect from defaulting clients to the state-owned telco; however, FIRSTEL is currently appealing the decision in the Supreme Court.
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