Published: 01 March 2018

STATE-owned mobile network operator, NetOne, says it has given up hope of recovering $11,3 million from its former service provider Firstel Cellular, which was liquidated 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 firm'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 on Tuesday that there were no prospects of recovering the money.

"Legal action was taken against Firstel and NetOne won the case, but unfortunately, when the judgement 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 the business going forward," NetOne chief executive, Brian Mutandiro, told lawmakers.

- The Source

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