Telone is in a fix, as it has been taken to the High Court. The state-owned telecoms operator is facing a lawsuit from a Singaporean company, Singapore Telecommunications Limited (STL) which provides transponder lease services.
According to court papers seen by Newsday, Telone owes US$195 419 to STL. STL was not directly involved in a business transaction with Telone. Instead, Telone had dealings with another company called ABS which then subcontracted STL for the provision of the services.
STL then started to provide the services to Telone on behalf of ABS. However, later on the contract between Telone and ABS was eventually terminated and so did the subcontracting agreement between ABS and STL simultaneously ended.
Now STL is saying that Telone owes it because they didn’t pay for the services which were provided before the termination of its contract with ABS. So STL want payment for those services it provided when the contract was still running. But Telone seem not to be willing to pay for these services.
Here’s what the filed court papers said:
During the period March 8, 2017 to June 26, 2017, the defendant (TelOne) utilised the plaintiff’s (Singapore Telecommunications) services aforesaid and paid the costs to ABS, notwithstanding the termination of the contract. ABS remitted to the plaintiff the service costs paid by the
defendant for the transponder lease service
During the period June 27, 2017 to December 29, 2017, the defendant utilised the plaintiff’s transponder lease service aforesaid for the purposes of providing satellite services in Zimbabwe.
The reasonable value of the fees and charges for the services as at December 29, 2017 amounted to US$195 419, 65. The defendant has been unjustly enriched at the expense of the plaintiff and the plaintiff thereby impoverished in the said sum.