State owned network operator, Netone says it has given up hope of recovering $11.3 million from its former service provider, Firstel Cellular which was placed under liquidation nearly two years ago.
First Cellular whose business included procurement, marketing and distributing electronic gadgets was placed under liquidation in July 2016 with Netone as its biggest creditor.
In October 2016, the telco’s liquidator Isaiah Nyakusendwa told creditors that they might only recover a dividend of 1.14 percent amounting to $16 000 after auctioning Firstel’s assets.
NetOne chief finance officer Sibusisiwe Ndlovu told Parliamentarians today that there are no prospects of recovering the money.
“Legal action was taken against Firstel and NetOne won the case but unfortunately when the judgment was passed we could only attach property worth $2 000 versus the $11 million. Subsequent to that Firstel applied for liquidation,” said Ndlovu.
A 2016 audit showed that Firstel was owned by NetOne’s top management, including former managing director, Reward Kangai.
“It’s just one of those costs that we absorbed (and) we now have to build business going forward,” said chief executive, Brian Mutandiro. –The Source