Econet calls Mandiwanzira’s dispute of its licence payment ludicrous & a lack of appreciation of basic finance & economics

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Minister of ICT, Supa Mandiwanzira

Econet has been quoted in a Sunday Mail article as having called the Minister of ICT’s argument that the operator hadn’t paid its licence in full ludicrous and the “lack of appreciation of basic principles of finance and economics” the reason why some State-owned entities accrue debts without an intention to pay them.

In a recent hearing with Zimbabwe’s parliamentary committee for ICT, the Minister of ICT, Supa Mandiwanzira stated that Econet Wireless’ statements that it had paid its licence in full were a lie.

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Mandiwanzira’s argument was that since Econet had paid part of its licence obligations through a clearance arrangement which offset debts it was owed by NetOne and TelOne – two state-owned telecoms operators, Econet hadn’t, in fact, paid its licence in full.

The Minister also said that since the debt was assumed by the State, the people of Zimbabwe were the ones who had paid for the licence. He also referred to the arrangement as an example of a fair playing field where privately owned enterprises like Econet can negotiate debt payment deals.

You can read Supa Mandiwanzira’s full statement on the issue here

Econet’s remarks come after a number of observers criticised Mandiwanzira‘s perspective on Econet’s failure to pay its licence. Instead of writing off a huge amount as a bad debt it’s practice for entities in Econet’s position to structure an arrangement to “monetise” the doubtful asset by using it to settle other obligations.

8 Comments

  1. Macd Chip says:

    Mandiwanzira should explain to us how TelOne got Lte license and how much it paid for it

  2. Greedy says:

    These morons are ruining the Zimbabwean industry. What is left of it anyway and they wonder why investors are running for cover and we have cash shortages. We are net importers. We import razor blades! I bet you if you want to start a razor factory you will have to pay a licence too.

  3. Dead says:

    Mandiwanzira is proof to show us that ZANU PF management is the worst management since Zifa was under Leo Mugabe
    When this all said, done and hopefully pass(by the demise of ZANU) we should have a museum which shows future generations the poor management of a ZANU government
    Mandiwanzira does not even have the decency to ask for basic advice on basic accounts
    Who employs these idiots really
    Idiots who head the ever evolving department of technology. Aya ndiwo masasi atinofanirwa kunzwa kuna Chinotimba

  4. magame says:

    This guy got famous by running a show called Talking Business. Apparently he learnt nothing from it despite interviewing business luminaries. He is overated.

  5. Clemence says:

    A whole minister displaying the worst ignorance leaves a lot to be desired no wonder why our economy is in the state it is right now. God help Zimbabwe

  6. Baba vaMandi says:

    Ndivo vanhu vari kumhanya nenyika yedu ava. God help Zimbabwe indeed! Takaomerwa sei!

  7. Takanaka says:

    Why cant “SUPA SINGING FOR HIS SUPPER” just keep his mouth shut.

  8. munhumutema says:

    The minister lacks the basics of accounting, by government offsetting its operators’ debts Econet paid. smh

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