Econet wins case against Trustco

Econet Wireless Zimbabwe has won the arbitration case relating to its long running dispute with its former software technology partner, TrustCo Mobile. This was after an international arbitrator dismissed the claim by TrustCo that it is owed $6,978,846 by Econet, and ordered that the Namibian incorporated company should instead pay Econet $455 500.

Econet said the ruling by the arbitrator, an international lawyer from South Africa, is the last chapter in the battle between Econet and Trustco, which the telecomms firm had earlier won at the Supreme Court.

In 2010, Econet set up a mobile based life insurance service called Ecolife.
The service allowed customers to get free life cover, as long as they met a minimum monthly airtime spend on their cellphone service.
The minimum threshold to qualify was airtime of only $3 per month.

The customers did not pay any monthly premiums, as with normal insurance schemes.
The system set up by Econet used a computer software system developed by the Namibian company. In terms of the agreement, Econet paid a licence fee based on the number of customers using the service.

After almost a year of working well together, Econet claimed TrustCo started demanding a higher fee for each customer than had been originallyagreed.

This led to a dispute between them, resulting in TrustCo cancelling the contract between the two. Econet, as a result ended the service altogether.

The parties ended up getting embroiled in a bitter court battle which went all the way to the Supreme Court of Zimbabwe, which ruled in favour of Econet.

It was then left to a special arbitrator chosen by the two parties, to assess the actual financial claims.
In that regard, the ruling issued this week, it was determined that it is in fact TrustCo that is required to pay Econet.

However, the ruling does not mean  Econet will now resume Ecolife as the company would have to find a completely new computer software system.

A spokesman for Econet said: “We are very pleased with this final ruling. Although we have won the court case, the software system used for Ecolife belongs to Trustco.”