Vee Networks, Vodacom terminate management agreement

Vee Networks (previously EWN) and Vodacom International Ltd. Wednesday mutually agreed to terminate their current management agreement on an amicable basis.

A statement jointly signed by Oba Otudeko, chairman of Vee Networks, and Alan Knott-Craig, CEO of Vodacom, says that, to ensure a smooth transition, Vodacom will continue to provide technical support to Vee Networks for a period of up to six months, adding that Vodacom will also continue to take an interest in the success of Vee Networks.

According to the statement, Willem Swart "has decided to resign from his position at Vodacom in order to pursue a career as the CEO of Vee Networks".

Vodacom last week issued a statement in SA to the effect that it did not find any evidence of corruption in Vee Networks after thorough due diligence.

Vodacom's statement stated inter alia:

"Whilst Vodacom has a management agreement to manage Vee Networks, previously known as Econet Wireless Nigeria (EWN) as from April 1, 2004, no decision has been made to conclude a transaction whereby Vodacom will acquire equity in any company effectively controlling Vee Networks.

"The previous management of EWN paid approximately 50 percent of brokerage fees, as approved by the board of EWN in 2002, during the course of 2003. These brokerage fees were for raising equity in EWN.

"After receiving allegations that the monies so paid in 2003 were improper, Vodacom engaged the services of expert legal counsel to do a due diligence in order to ascertain whether those allegations were true.

"As a result of the ensuing due diligence legal counsel concluded that no evidence could be found to suggest that they were improper. The balance, approximately 50 percent, of the brokerage fees is still outstanding."

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