Despite a 2015 agreement between the Zimbabwe Government and VimpelCom for the latter to sell its 60 percent stake in mobile telecoms firm Telecel Zimbabwe for US$40 million, latest indications are that Zimbabwe is yet to fulfill terms of agreement in respect of payments.

The NasdaQ-listed international communications and technology company could yet be still holding sway at Telecel Zimbabwe after it was revealed that the Government has not paid the US$40 million in full.

Last week, Reserve Bank of Zimbabwe governor Dr John Mangudya told a Parliamentary Portfolio Committee on Information and Communication Technology that although some of the money had been paid, there was a balance outstanding, which seem to worry the central bank boss.

“On the Telecel issue we are aware of the transaction wherein Government was paying an amount of around US$40 million of the shares to a foreigner.

“Some of the amount was paid and there is a balance due to the foreigner. I’m not sure whether the Government has been made aware of the dangers of not making full payment,” he said.

In November 2015, Amsterdam-headquartered telecoms giant VimpelCom agreed to sell its controlling stake in Telecel Zimbabwe to the Government for $40 million.

At the time VimpelCom, owned 60 percent of Telecel Zimbabwe.

A business contract typically creates certain obligations that must be fulfilled by the parties, otherwise consequences can range from being sued for breach of contract or outright termination of the contract.

A year after the deal was reached (2016), said the Netherlands-based company still has a presence in Zimbabwe.

“As of today, VimpelCom and Global Telecom Holdings (GTH) remain a 60 percent shareholder in Telecel and we look forward to completing the sale only after satisfaction of all customary closing conditions are met,” said a spokesperson at the time.

Zimbabwe’s foreign currency shortages are largely seen as the reason why the transactions has not been completed.