Johannesburg – Telecommunications group MTN is suing prepaid airtime distributing company GloCell for more than R170-million.
MTN has roped in the services of legal eagle Gilbert Marcus to recoup monies it claims it lost after its contract with GloCell went pear-shaped.
In 2013, MTN appointed GloCell to distribute its prepaid products to customers and potential customers through GloCell’s retail stores and third-party distributors in South Africa.
However, in its summons lodged in the Joburg High Court, MTN said between December 11 2017 and February 5 2018, GloCell purchased prepaid products from it but failed to make the payments in terms of the invoices.
“GloCell was required to make payment for the prepaid products within 60 days from the date of statement issued by MTN … in the event GloCell failed to timeously pay any amount payable to MTN, MTN is entitled to charge interest at the rate of 2% above the prime overdraft rate charged by Nedbank to its corporate clients,” the papers say.
“In the premises and as appears from the schedule, Glo- Cell is indebted to MTN in an amount of R170 908 109.5… not withstanding demand, Glo-Cell failed and/or refused to make payment to MTN of the outstanding amount.”
GloCell is a mobile service provider that has been in business since 2001, having been established with Investec as a major shareholder.
According to the company’s website, the group has grown to become one of two largest prepaid airtime and data distributors in South Africa with annual revenues of more than R5-billion and dispensing over 40-million airtime transactions monthly.
GloCell is also a leading supplier of electricity comprising hundreds of local municipalities, plus other value-added services such as DStv vouchers, Hollywoodbets and many ticketing services such as sports events, buses, trains, fashion, exhibitions and more.
GloCell did not respond to questions.
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