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Vodacom Tanzania pays $2.3 million settlement to free employees

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The state said it did not receive more than TZS 11 billion from Vodacom Tanzania due to irregularities that the company and employees.

Sunday 14, April 2019

(Bloomberg) --Vodacom Group’s Tanzanian unit said it paid a settlement of TZS 5.3 billion ($2.3 million) for the release of five employees charged with depriving the government of revenue.

Prosecutors accused them of organising a criminal racket and allowing third parties unauthorised access to network services, according to court documents.

In a statement, Vodacom said that it made the payment in order to settle charges and it hired Squire Patton Boggs to conduct an internal review into the facts underlying the accusations.

The charges come two years after Johannesburg-based Vodacom listed its Tanzanian unit on the local stock exchange following pressure from the government to increase domestic ownership.

The run-in is the latest between President John Magufuli’s administration and international companies, with Bharti Airtel agreeing to cede a portion of its local unit to the state in January after claims the operator acquired its initial shareholding illegally.

Vodacom also has operations in the Democratic Republic of Congo and Mozambique, and is the market leader in South Africa.

TAGS : Vodacom, President John Magufuli

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